As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday, 22 June 2019

The Last Few STI Big Bear Market


Bear market STI low

28 Dec 1987, STI : 823

  4 Sep 1998, STI :  800,    10.7 years


  9 Mar 2009, STI : 1,457, 10.5 years

 21 Jun 2019, STI : 3,321, 10.3 years (Still Bullish)



So this time is different???


More Good Years???





10 comments:

  1. By 2nd half 2020?? Hohoho!

    How to invest & profit in the next recession. Simple and general tips ... especially for those still working.

    ReplyDelete
  2. Market is crazy nowadays... but it cannot go forever without a recession.

    ReplyDelete
  3. There is still one question to answer when it appears aka the Black Swan, what are U going to do with the pistol in your hands?

    When should U start pulling the trigger after the Black Swan appears. U can only "agar, agar".


    Just about SGX alone, how many have U targeted?

    And each target how much?

    Our bullets are limited.

    Still need at least a few years reserve if U are a retired.

    Can't invest like U still have HC in de-accumulation phase. Must beware of cash flow for daily living.

    YMMV.

    ReplyDelete
  4. Retirees don't have to invest to build up wealth for retirement. Know what is enough and stay invested and add when favourable market condition appeared for that desired yield. Slightly bigger cash generation for next few years as saving.

    ReplyDelete
  5. In a sense if one has invested $1,000,000 in stocks in the thick of bear market, if invested judicially, the dividends generated p/a maybe just enough for one's daily household's expenses with a little belt tightening if necessary.

    Let say dividends are 3 to 4 % to be on the safe side.

    Of course, there shall be other assets generating cash for augmentation too, would be better to best.

    ReplyDelete
    Replies
    1. There may be more upside if we can collect those big cap stocks at 3 to 4% during market crash

      Delete
    2. The STI yield is 5~6% during bear market (crash) with ~50 margin of safety in price.


      Delete
  6. 5 to 6 % dividend yield during bear market then during bull market, yield should be lower or higher?

    Should be not to attractive then?


    ReplyDelete
  7. During the last 3 big bears, STI weighted dividend yield peaked at around 5.5%-6% on TTM basis.

    However chances are that most people were too scared to buy. Yield can always go higher! LOL!

    E.g. At the beginning of 2016 in the 2015 mini-bear, STI yield reached 4.5% ... how many were buying big then?

    Currently the yield is about 3.6+% --- average to slightly above average. Compared to many other stock markets around the world, S'pore blue chips are still rather cheap.

    Coincidentally monthly resident unemployment rates often peak at 5.5% to 6% in major recessions. However this statistic is slightly delayed by couple of months from MOM.

    Hence more useful as "timing" tool for property bargain hunting. (Properties only see major price drops when big numbers of people lose jobs & can no longer pay their mortgages)

    ReplyDelete

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