Fear, Uncertainty and Doubt in Stock Markets
Posted: 12 Aug 2008 08:11 PM CDT
Image by MaestroBen via FlickrI posted this article a year ago on National Day last year, 9 August 2007 relating to fear, uncertainty and doubt in stock markets.
Given the current lacklustre stock market conditions due to Singapore’s slowing economy, there is some level of fear because the STI has not gained much in 2008. In addition, the subprime situation that reared its ugly head is still affecting banks globally as they continue to announce write-downs and losses from their investment banking operations.
My portfolio is about 22% in cash and cash equivalents with 78% invested in stocks listed on SGX. While my portfolio is not performing as most are blue-chips that are correlated to STI, it still generates some dividends that give a better return than 1% Fairprice plus savings account. What will I do now amid this fear, uncertainty and doubt in the markets. Continue to watch but avoid commiting new monies to the market as my self-imposed limits on portfolio allocation is not more than 80% in equities. Basically, now is to hold and try to get rid of the laggards that I bought at toppish prices just before sub-prime last year. May end up attending the AGMs of such companies if I become a long-term holder. 
How do you handle the fear, uncertainty and doubt that afflicts markets from time to time?
Let’s hear from you in the comments section.
Be well and prosper.
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