The Risk of Catching a Falling Knife

Not a surprise. My posting yesterday to start nibbling and buy more when the market goes down, was met with intense skepticism by many.  One even suggested my advice is like “catching a falling knife”, referring to a common saying in Wall Street where people could end up going bankrupt as the correction could turn out to be much longer and deeper. In fact, the market promptly going down by 182 points or down 3.05% to 5789 today did not seem to help. Continue reading “The Risk of Catching a Falling Knife”

Start Nibbling, Buy More If The Market Goes Down

On June 19th, I suggested, hold do not buy yet. Since then the market went down further by more than 500 points. Based on the action yesterday, however, where the PSE index walloped 211 points or 3.41%, my suggestion now is,  start buying. Fire off some of your ammunition, but not all at once. Although I do not believe the market will go much lower, it is possible it might indeed go lower. Continue reading “Start Nibbling, Buy More If The Market Goes Down”

Buy, Hold or Sell?

In my most recent posting, I explained why in my opinion the PSE index is correcting. The real question however is, what now? It is now June 19, should one buy, hold or sell?

My straight answer is hold, it might be too late to sell, but still early to buy. Wait for the valuation to be more acceptable and for the technical indicators to signal buy! Continue reading “Buy, Hold or Sell?”

Bounce Back Stocks

Now that we have experienced a severe stock market correction to date, what now? Is it time to buy? When buying, what stocks?

One approach that some use is to buy the stocks that have corrected the most from their most recent highs.  The rationale being that those are the stocks that would have the potential to earn you the most when they bounce back to their former highs, assuming the recent movement is just that- a correction. Continue reading “Bounce Back Stocks”