Investors enthused by rising market, especially among lower-cost punts

[violinist]

CNY is a good time to judge sentiment. I remember 2009 CNY NO relative wants to talk about stocks. It was as if it is a taboo. So happy observing!

[Temperament]

One should be cautious when everyone is greedy!

Especially when you have penny stocks leading the rally and newpapers with headlines of rising stock market.

That said, the market can stay frothy for a long, very long, time. The Dot Com is a very good example. At its peak, the P/E for tech companies went up to as high as 40-50 times. Some analysts were already calling it overpriced when the P/E was above 20 times, but had one sold out then, you would have missed out on the bulk of the gains. Nevermind that the rally was sentiment driven or even irrational, there was real money to be made if one rides the uptrend.

Which is why I believe this bull run still has a long way to go. I believe STI 4000 is a closer reality than a lot of us expect. There is just too much liquidity in the market - the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan are all going on unprecendented monetary easing - chasing yields. Most of the capital gains is made at the tail end of a bull run. 20-25% is not uncommon.

Is it risky to stay invested? Undoubtedly. Is it worth the risk? That would vary depending on your risk appetite and stage of your life cycle. For me, I have not sold anything even though some of my counters are at, or even exceeded, their 52 weeks high.

HA! HA!
i actually always dream to do what you say for at least once in my life time. So far it's a dream only because you really must have very strong guts besides your deep pockets. May you succeed one day.

[paullow]

One should be cautious when everyone is greedy!

Especially when you have penny stocks leading the rally and newpapers with headlines of rising stock market.

That said, the market can stay frothy for a long, very long, time. The Dot Com is a very good example. At its peak, the P/E for tech companies went up to as high as 40-50 times. Some analysts were already calling it overpriced when the P/E was above 20 times, but had one sold out then, you would have missed out on the bulk of the gains. Nevermind that the rally was sentiment driven or even irrational, there was real money to be made if one rides the uptrend.

Which is why I believe this bull run still has a long way to go. I believe STI 4000 is a closer reality than a lot of us expect. There is just too much liquidity in the market - the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan are all going on unprecendented monetary easing - chasing yields. Most of the capital gains is made at the tail end of a bull run. 20-25% is not uncommon.

Is it risky to stay invested? Undoubtedly. Is it worth the risk? That would vary depending on your risk appetite and stage of your life cycle. For me, I have not sold anything even though some of my counters are at, or even exceeded, their 52 weeks high.

HA! HA!
i actually always dream to do what you say for at least once in my life time. So far it's a dream only because you really must have very strong guts besides your deep pockets. May you succeed one day.

i got something to add:

and most importantly the patience and time to let it all happen.

sti 3250 is not a low figure and bargain stocks which meet my safety criteria are difficult to find, but i agree, index is not that expensive for one to cash out.
I would be turn very cautious when index hits its former 2007 highs.
till then, for me, i think i would stay invested but i would be hesitant to put new monies in.