Tuesday 8 July 2014

Is there really a way to detect whether recession is coming?

I am one of the few who call for a bull market last year despite so many bad news, eg debt ceiling crisis, tapering , US government shut down etc .
Who want to know why am I so confident? 
Is there really a way to detect whether recession is coming?


Photo: I am one of the fews who call for a bull market last year despite so many bad news, eg debt ceiling crisis, tapering , US government shut down etc .
Who want to know why am I so confident? 
Is there really a way to detect whether recession is coming?

Sunday 6 July 2014

Does Dollar Cost Averaging works? - Part 2

One must understand how DCA works. It only work in uptrend or recovery markets. And please take note that I never said DCA won't work at all, but DCA won't work in a down trend market. 

Qn:  DCA can apply in STI or China in the long term. says 10-20 years? 

Ans: Yes. Cos China & STI will be in the uptrend in the long term. Question is whether this person can/willing to invest for a period of 10-20 years. And will this person give up half-way and stop investing when he or she see their portfolio dropping by 30-50% during the downtrend/recession, for example 2008-2009 or not growing after investing for a few years.

See what happen by DCA in China for past 5 years, how much opportunity have this person lost. 

Why can't we wait till the market bottom up and start buying in the uptrend.

Buy Low Sell High is always the most basic fundamental of investing.

And please take note that DCA cannot apply to individual stock.

"Buy low and sell high. It's pretty simple. The problem is what's low and what's high" 
- Jim Rogers