The Capricorn Effect and May Sell-off

[dzwm87]

Having lost its way for the past 2 days, the market is finally going the right direction

Probably just a market technical rebound or an anticipation of the euro summit.. nothing much has changed

[freedom]

Having lost its way for the past 2 days, the market is finally going the right direction

Probably just a market technical rebound or an anticipation of the euro summit.. nothing much has changed

the same can be said for the drop. Nothing much has changed, but the market has dropped almost 10%.

[KopiKat]

Having lost its way for the past 2 days, the market is finally going the right direction

Probably just a market technical rebound or an anticipation of the euro summit.. nothing much has changed

the same can be said for the drop. Nothing much has changed, but the market has dropped almost 10%.

As of yesterday's close (STI = 2823.75), 'only' -5.2% for the month of May and still +6.7% for the year!

[dzwm87]

Having lost its way for the past 2 days, the market is finally going the right direction

Probably just a market technical rebound or an anticipation of the euro summit.. nothing much has changed

the same can be said for the drop. Nothing much has changed, but the market has dropped almost 10%.

the drop is a correction of the bullish run early Jan-Feb

nothing has changed much to warrant such a bullish surge

[Jared Seah]

Good one Kopikat!

"Intrinsic value" is great for intellectually stimulating discussions.

But the price we've paid is the real deal that determines our fear and greed emotions.

If STI is a stock, someone who paid 3000 has a very different emotional baggage compared to another person who paid 2700 for STI.

Never mind if the both of them have the same view on STI's "intrinsic value".

One may be thinking of cutting loss; while the other may be thinking of adding more on dips

[VestedInterest]

There's always property.

I always feel Singaporeans are much more likely to put their money into property rather than shares.

This is anecdotal evidence gained from just asking around.

Property is rather peakish at current levels. Though there may be a minor correction, if at all, the upside potential is limited at the moment. Everybody is looking at what might the government's next move be. Nobody wants to commit huge amounts in an illiquid asset for the time being.

[VestedInterest]

Now am beginning to see why stock prices tend to rise in the early part of the year. Apart from the usual fund managers doing their annual spring cleaning, this could also be contributed by the fact that the bulk of dividends for most companies are declared at the end of the FY financial report which usually happens from Jan- Mar. Investors then position themselves for the dividend and in the process push up the share prices. They then hold on to the stocks hoping to reap the dividends. Most of the stocks go ex-dividend in May of each year and when this happens, the share price tend to drop more than the dividend being paid out, especially in a weak market. The share price fluctuations tend to overshoot on either side of the sell-buy equation.
Hence it may be more prudent to buy, if one had to, when the shares go ex-dividend or way ahead of the dividend announcement. At the end of the day the buy and hold approach is still best. Just hold out for the dividend for as long as possible.

This January 2013- will it be different? There's the Fiscal Cliff looming above. With the threat comes opportunity. Think can buy some good counters on dips. Please tread carefully.

[violinist]

Now am beginning to see why stock prices tend to rise in the early part of the year. Apart from the usual fund managers doing their annual spring cleaning, this could also be contributed by the fact that the bulk of dividends for most companies are declared at the end of the FY financial report which usually happens from Jan- Mar. Investors then position themselves for the dividend and in the process push up the share prices. They then hold on to the stocks hoping to reap the dividends. Most of the stocks go ex-dividend in May of each year and when this happens, the share price tend to drop more than the dividend being paid out, especially in a weak market. The share price fluctuations tend to overshoot on either side of the sell-buy equation.
Hence it may be more prudent to buy, if one had to, when the shares go ex-dividend or way ahead of the dividend announcement. At the end of the day the buy and hold approach is still best. Just hold out for the dividend for as long as possible.

This January 2013- will it be different? There's the Fiscal Cliff looming above. With the threat comes opportunity. Think can buy some good counters on dips. Please tread carefully.

No need think so much lah. Drop buy, shoot sell. Drop some more, buy some more. Shoot some more, sell some more.

[Kelvin]

seems like going up and up

nothing looming ahead?

[palantir]

Having lost its way for the past 2 days, the market is finally going the right direction

Probably just a market technical rebound or an anticipation of the euro summit.. nothing much has changed

the same can be said for the drop. Nothing much has changed, but the market has dropped almost 10%.

the drop is a correction of the bullish run early Jan-Feb

nothing has changed much to warrant such a bullish surge

The trend is similar this year... will the event happen again