The Averaging Dividend Investor
(Previously known as Singapore Stocks
and Shares and SG Links Index)
Helping to spread the virtue of long-term
investing via buying group of good value companies and stay invested for
their dividends.
If this site have inspired you to become a better Dividend Investor,
then
A little kindness from YOU means a lots
to THEM :-) Canossaville
Children's Home
"It's your unlimited power to care and to love
that can make the biggest difference in the quality of your life."
Tony
Robbins
The Average Joe or Jane are better off investing in the stock market
for long-term via a simple method called Time Diversification.
e.g. Invest and diversify in a FEW of the good quality stocks every
quarterly, half yearly or yearly with a FIXED AMOUNT of CAPITAL
that are part of the ST Index which are usually large blue chips
companies with good management.
Invest in any FIVE to TEN of these good quality blue chips companies
that
you are familiar with in each different industry sector listed on
the Singapore Stock Exchange and in the ST Index Components.
It make great sense to be a long term STI Investor due to the
fact that past history have shown that the ST Index will hit NEW HIGHs
as the year passes by. Just ask yourself this question, "Is the
ST Index higher now as compare with 10, 20 or 30 years ago?".
When the ST Index moves higher, it means that the Stock Price of Individual
stocks that made up of the ST Index are moving higher.
The Past 10 Years
Folks, let's take a longer term approach to the market and examine
what happened in the past 10 years.
1. 1998, STI sanked to below 1000 pts. It was the bleakest period as
far as I could remember in recent history. I was there, even the strongest
heart was shaken.
2. Following that the market recovered swiftly to about 2500 pts in
year 2000 before sinking to about 1500 pts in year 2003.
3. From there we had a good run to >3600 pts.
Some Others Crisis Update:
1) US Sub-Prime Crisis - Date : 31 December 2008 - STI
below 2500 points - STI marks worst-ever year, ends down 49.2% from
2007 -
The blue-chip Straits Times Index shed 9.09 points, or 0.5 per cent
from the previous day, to 1,761.56 on volume of 457 million shares
worth S$493 million. Gainers led losers 177 to 167, with 959 issues unchanged.
2) US High Debt Ceiling and European Countries Debt Woes -
Singapore’s Straits Times Index (STI) dropped 0.6% to 2,748.18 at the close,
paring losses of as much as 1.2. August 26 2011.
3) The Low Oil crises (which went as low as 27 USD a barrel) and
China economy woes cause the STI to hit a new low of 2,532.70 on January
21 2016.
4) STI
2018 Feb 06 Drop 76.55 points Due To US Stock Plunge - Fed Interest
Rate Hike due to the economy good performance.
If you compare the recent 'correction', it
is hardly significant compared to the events that unfolded previously in
history. And each time that there was a major bear market, the bulls
followed, stronger than ever.
I think to be in this market, you need conviction
that "the market eventually will be much stronger in the
longer term". The Dow Jones has been doing that for over
100 years. The bleakest of times will present the best opprotunities to
invest. Easier said than done. There
is probably 10 times more people buying towards the end of the bull market
rather than the end of a bear market.
Long-Term Investment Success
The key to long-term stock investment success lies first to avoid losing
big. A real true long-term investor should do the same and wait for
a MARKET CRISES to buy stocks at attractive prices.
After that, investor can ignore the madness of short-term volatility and
sell the stocks only when they become overvalued. In the long-run, this
strategy can substantially increase the wealth of investors.
Keep in mind that it is human nature to hold on to losing stocks and
sell winners too early. Hence, an investor or trader is likely to book
a 20% - 30% gain rather than cutting loss at 20%-30%.
"There are investors who classify themselves as traders and look at
charts, fundamentals, trading ranges. etc. I don't really bother with those
stuff. I prefer a simple regular monthly investing through a dollar-cost-average
strategy. That means setting aside a certain percentage of your income
or a fixed dollar amount and investing through bear and bull markets. This
prevents you from sitting on too much cash and not earning anything on
your money. If you keep listening to all the financial
noise awaiting the next doomsday scenario, you'll never invest a dollar.
Skip
the doomsayers and start investing for your future. I try to have a watchlist
of 50 or so stocks that includes my portfolio. Every month I invest in
what I think is the most attractively valued business at that time."
Investment Strategy
My Dividend
Investing Strategy
Singapore
Stock Technical Analysis |