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Wednesday, 12 August 2015

Recent Market Volatility - Fight or Flight?

We have been seeing pretty extreme market volatility in recent weeks. I am sure many of us were adversely impacted, regardless of the size or quality of the portfolio. This recent volatility was made worse by China's recent decision to devalue the yuan, which caused further weakness in the financial markets.

Many of the companies in my portfolio saw steep declines in their prices. Although this is naturally quite unnerving, this also presents a chance to re-enter some of the positions, especially those in which I feel that they were oversold. This includes OCBC, Singtel, Sembcorp Ind and the REITs in the portfolio, whereby some of the current prices have fallen even below my average cost price. This is where the importance of a warchest is obvious, as it allows us to take advantage of such occasional opportunities.

I choose to continue to fight and not flight, so have you made your choice as well? I shall end off with this quote: Keep calm and invest on, my friends.

Signing Off
Transitioning Stock Investor

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