A trial of patience and endurance

March 9, 2009 at 7:47 pm Leave a comment

STI has slipped down to below 1500, it could go even lower. Who knows?

This is mainly due to the deleveraging and redemption of hedge funds, mutual funds, pension funds and whatever. The stocks that are dropping more now are the liquid blue chips which these funds hold most of.

So, this is a trial of patience and endurance as we know that winter is coldest before spring arrives. Using the LIFO convention, i expect the liquid blue chips to jump when a bull rally takes place.

As a value investor, we should not be too concerned with the forced fund movements. Concentrate on your business of evaluating business and whether they are priced cheap and safe. Hold for the long haul (ie. at least 5 to 10 years) and the pot of gold at the end of rainbow will be yours for the picking.

Entry filed under: Investing. Tags: .

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