Latest Posts By ozone2002 - Supreme About ozone2002 |
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10-Oct-2008 09:32 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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the larger the drop...the larger the opportunity | ||
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10-Oct-2008 09:25 | GLD USD / Gold going up this year? Go to Message | ||
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Gold prices keep rising as stocks collapse 06:50 Xinhua Newsfeed
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10-Oct-2008 09:02 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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leilong!! great s'pore sale | ||
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09-Oct-2008 22:33 | Keppel / keppel Corp Go to Message | ||
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Wah piang eh! From $15 to $6..that's >50% discount!.. that's one stock screaming buy buy.. consistent divy payout..plus growth from its shipping & O&M business & infrastructure.. |
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09-Oct-2008 17:39 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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if its a genuine rebound and ya wondering if its the real deal.. then you have missed a golden opportunity.. nobody can tell u when or where the bottom will be.. Go for long term..cos you know that when the bulls r back..it's gonna b much higher than what u bought today,tmr or day after tmr |
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09-Oct-2008 13:29 | GLD USD / Gold going up this year? Go to Message | ||
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gold jumped again as investors dumped stocks and moved to safe havens like gold.. GOLD GOLD GOLD!.. have u accumulated yet? |
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09-Oct-2008 11:30 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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Forget logic; fear appears to have edge The technical term for it is "negative feedback loop." The rest of us just call it a panic. How else to explain yet another plunge in the stock market Tuesday that sent the Standard & Poor's 500-stock index to its lowest level in five years — particularly in the absence of another nasty surprise? If anything, the markets should have been buoyed by the Federal Reserve saying it would shore up another troubled corner of finance by lending money directly to companies. Stocks did open higher, but then quickly tumbled as rumors swirled about the viability of big financial firms like Morgan Stanley and the Royal Bank of Scotland. Anybody searching for cause-and-effect logic in the daily gyrations of the market will be disappointed — even if the overarching problem of a crisis of confidence in the global economy is now becoming clear. Instead, the market has become a case study in the psychology of crowds, many experts say. In normal times, it runs on a healthy mix of fear and greed. But fear now seems to rule, with investors often exhibiting a Wall Street version of the fight-or-flight mechanism — they are selling first, and asking questions later. And that bunker is getting very crowded, so much so that some analysts are starting to suggest the markets are showing signs of "capitulation" — another term of art to describe what happens when even the bullish holdouts, the unflagging optimists, throw up their hands and join the stampede out of the market. Fear can be seen at every turn — in headlines raising questions about another Great Depression, and in the crowds gathered around office televisions to track stocks or to parse the latest pronouncements from the Federal Reserve chairman, Ben Bernanke, or the Treasury secretary, Henry Paulson Jr. Even James Cramer, the voluble and long-bullish host of an investing show on CNBC, advised investors to sell some stock during appearances on the "Today" show Monday and Tuesday mornings. To some, signs of capitulation can be read as an indicator that the bottom may be near. Indeed, Sam Stovall, chief investment strategist at Standard & Poor's Equity Research, is among those who say the market may be close to a bottom. In addition to his analysis of the market, he was swayed by the numerous telephone calls he has received in recent days from professional acquaintances and his sister-in-law, all saying they are getting out of stocks. "More and more people are doing that and selling out," Stovall said. The opposite of capitulation, of course, is investing at the height of a bubble. One oft-cited sign of the housing market's top: when dinner parties are dominated by stories about fast profits on flipped condominiums. During the dot-com boom in the late 1990s, it seemed everybody and their grandmothers were piling into stocks. Now they are bailing out. Tuesday was the fourth consecutive day that the S.& P. 500-stock index registered a decline of 1 percent or more. The last time that happened was October 2002, when the index reached its lowest point during the bear market that started in 2000. The S.& P. is now down 36 percent from its peak a year ago, almost to the day, on Oct. 9, 2007. Another barometer of panic: volatility, reflected in the so-called Fear Index (or the VIX), which tracks options trades that investors use to protect against future losses. On Tuesday, it climbed to its highest level since the 1987 stock market crash. Fear is an immensely powerful force, perhaps more so than greed, said Andrew Lo, a professor at the Massachusetts Institute of Technology who has studied investor behavior. Scientists who have studied the brain function have found that the amygdala, the part of the brain that controls fear, responds faster than the parts of the brain that handle cognitive functions, he said. "Fear is a much stronger motivational force," Lo added. "The loss of $1,000 has a much bigger impact than the gain of a $1,000." He cites a series of groundbreaking experiments in the 1970s by psychologists Daniel Kahneman and Amos Tversky. In one test, they asked students to choose between a sure bet of $3,000, or an 80 percent chance of winning $4,000 (meaning there was a 20 percent chance of winning nothing). Most students said they would take the $3,000. The same question, framed differently, asked them if they would rather lose $3,000 or accept an 80 percent chance of losing $4,000 (with a 20 percent chance of losing nothing). In this case, they said they would take the riskier bet. In other words, they were willing to take a bigger risk to avoid losing money than they were when they stood to make more money. Those instincts seem to be taking over. At this point, any spreadsheet analysis of underlying and intrinsic values of stocks becomes meaningless, and concern for preserving wealth overrides the desire to grow it — what some may call greed. "With negative emotions we tend to have a desire to change the situation," said Ellen Peters, a senior scientist at Decision Research in Eugene, Oregon But "when things are good there is not much desire to change." That perhaps explains why investors are willing to earn virtually no return in Treasury bills just to be assured that they will get their money back, rather than investing in short-term corporate debt that offers a better return but carries some risk. Investors were reminded of that risk after Lehman Brothers sought bankruptcy protection last month. Even banks, which make money by lending to businesses, consumers and each other, are hoarding cash. That is why the Federal Reserve said on Tuesday that it would buy commercial paper, the short-term loans issued by companies and banks. If the market is indeed close to the bottom, history suggests any rally in the next few weeks will probably be big. Since World War II, Stovall estimates stocks have recouped about a third of their bear market losses in the first 40 days after the market hits bottom. But enough investors have to first be persuaded that the economy and housing market will begin recovering soon. Another major test will be third-quarter corporate earnings announcements that will trickle out in the next three weeks. Perhaps the most important indicator will be the credit markets: Investors will regain confidence when they believe financial firms are adequately capitalized and money is flowing more freely through the financial system. Ackman, the hedge fund manager who has been vocal about his bearish views of some financial companies in recent years, said it is hard to precisely time the market. But, he added, "I do think that stocks are getting extremely cheap." David Bertocchi, a portfolio manager for Baring Asset Management in London, echoed that sentiment, saying he was beginning to increase his stake in certain companies. He is taking advantage, he said, of panicked selling by hedge funds that have to pay back loans to their brokers. "That's what drives markets to attractive levels," he said. |
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09-Oct-2008 11:14 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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dare to short dare to buy for long term dare to be greedy when others are fearful..
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09-Oct-2008 11:02 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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Invest In Great Companies With Solid Fundamentals Remember that crashes are where FORTUNES ARE MADE. It is YOU, the well educated investor from Wealth Academy that must now put all your learnings to the practical test. Now is the time to research on those great companies (wide economic moat, way undervalued, history of consistent earnings, Low or zero debt, high ROE) and buy them at huge discounts when NOBODY WANTS TO TOUCH STOCKS. When the market turns around (anywhere from 1 month-12 months), you will be those very few who can say that the crisis was where you made your fortune and laugh all the way to the bank. This is exactly what our dear Warren Buffett is doing right now, spending billions buying up companies for just pennies to the dollar. He just bought up GE, Added to UNH and also GS. The safest thing you can do is to look at non-financial stocks (the financial stocks have assets that are just too complicated to value) or even just simply buying the Index ETFs! That is a no brainer! As I have always used a consistent dollar cost averaging model, I will not be looking to time the market so much. Rather, I will just happily and consistently add more and more very good stocks to my portfolio REGULARLY at these really great bargain prices. |
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09-Oct-2008 09:26 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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be greedy when there's fear..cos humans r irrational when they panic.. | ||
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08-Oct-2008 17:28 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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plus high vol | ||
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08-Oct-2008 14:52 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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in adversity i see opportunity | ||
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08-Oct-2008 08:59 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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5% drop pick up more shares :) | ||
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07-Oct-2008 13:14 | Others / Where to put money if market is like this ..... Go to Message | ||
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1) Put warrants 2) Gold 3) Forex trading |
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07-Oct-2008 11:39 | Others / Forex Junction Go to Message | ||
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hi i've been trading Forex for a few months already..making more than my day job trading FX.. yesterday did trades on EUR/USD pairing..short all the way..shiok shiok.. using FXCM..very nice platforms..more technical trader with my stop losses in place for every trade to minimize massive losses if my entry goes awry.. but lookin @ IG markets accts as it is local..easy to withdraw my money..keke just wondering is there a club for FX traders that I can join to share trading knowledge? |
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07-Oct-2008 09:23 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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wat a disappointing drop for STI..where's the carnage n bloodshed | ||
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06-Oct-2008 10:34 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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free fall! 9.8m/s | ||
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03-Oct-2008 14:30 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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vol is so low today.....despite the drop | ||
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03-Oct-2008 09:52 | China XLX Fert / The growth additive Go to Message | ||
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something gg on with this stock..has been on the uptrend.. vested this morning @ 45c |
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02-Oct-2008 11:42 | Straits Times Index / STI to cross 3000 boosted by long-term investors Go to Message | ||
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yeah artificial rally on the way!.. rejoice.. haha | ||
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