More heartlanders buying shares

[Musicwhiz]

OK, this is one of the "warning bells" to look out for in terms of bullishness. A news article appears along with a video interview (on RazorTV) on how more and more people are "investing". Take heed and mark this down in your calender. I think over time, we should start to see more of such "inspiring" articles.

Jan 17, 2011
More heartlanders buying shares
By Goh Shi Ting, Multimedia Journalist, RazorTV

RETIREE Peter Yu has stayed away from the stock market for the last 30 years.

But last month, the 60-year-old grandfather decided to dip into his retirement fund to invest in stocks after hearing news of the stellar performance of the two integrated resorts that opened last year.

Mr Yu, who invested more than $10,000 in the Genting Singapore stock, joins a growing group of heartlanders hoping to ride on the positive momentum of the stock market.

Since September last year, local stock brokerage Phillip Securities saw a 10 per cent rise in the number of people opening new trading accounts and a 5 per cent increase in the number of people visiting its seven heartland investor centres.

Phillip Securities' Head of Dealing, Won Tien Ching observed 'a lot of phone calls from uncles and aunties who hold dormant accounts requesting for a higher limit to trade... I would say that the market is quite positive at least for the first quarter of this year.'

But analysts also reminded amateur first-timers to do their homework before making their money work for them.

[arthur]

MW-san

I think we are at the start of euphoria state. Not the end of it.
Actually the momentum within this state has ability to carry the equities to even higher prices!

But of cos, I must remind all newcomers that looking at higher prices doesn't mean its safe. It just means we get closer and closer to the end of party.
Don't be the last one catching the last ball.

Cheers!

PS: MW-san, I was thinking maybe we should really copy and save those news articles as you pasted. Its just like.. we are seeing this all over again. Maybe we can use them to warn the newcomers.

Valuebuddies coverage is definitely way more than 350 members. We see one member but there are at least 2 unknown guests that visit us reguarly too. Boss Cyclone shld knw the stats better eh.

[BlackCat]

MW-san, I was thinking maybe we should really copy and save those news articles as you pasted. Its just like.. we are seeing this all over again.

Good idea, I'd like to see a long-lasting thread, with articles, stats, or anecdotes about sentiment...throughout one cycle.

but there are at least 2 unknown guests that visit us reguarly too.

Could be me, I often visit but don't login unless posting.

Back to the article, the retired 60 year old guy is talking a really big risk, unless he is just doing it for entertainment.

[Zelphon]

Great..

Time to start liquidating in intervals...

[yyt]

The market has recently closed with 1,762.1M shares traded... I remembered it was ard 1000M+ only a few months back.

Haha, the good luck to everyone

But analysts also reminded amateur first-timers to do their homework before making their money work for them.

Very true, except it's easier said than done. When I first started not long ago, this "homework" nearly killed me, haha and I suffered from paralysis from analysis.

Sometimes, it's so hard to gauge when it's enough.

[arthur]

Gents. I am not advocating to start liquidation of your portfolio alright?
I could be damn wrong and for all we know, we are at the beginning of a major bull run up.

Please take my personal opinion with a pinch of salt and some analysis. Cos I don't wan to be blamed for making some of you getting lesser profits in the end eh..

You ppl know what I mean. Investors always attribute profits to their own capabilities and loses to their brokers, trading platforms, friends and even astrological signs.

[hongonn]

Hehe, i also want to share my observation of boom and bust cycle. My observation is not from the neighborhood, not from the volume etc but from my own stock portfolio instead.

You see my stock portfolio mainly consists of 2nd liners and not any STI components or blue chips. During the last cycle, when the bull start charging up in early stage, i did not see my portfolio rose with the STI index or the blue chips. Mostly remains flat. Only when the STI index starts to remain stagnant, then i saw those 2nd liners start to inflate and chased up the STI index for the same level of appreciation. After 6 months to 1 year later, the market crashed.

For the past 6 months i start to observe the same pattern again, my portfolio has gone up on par with the STI index again. Haha, i should be panic to see my portfolio rises again. After pushing up the 2nd liners, the market might not able to find anything else to inflate, then maybe it is time to crash :p

[Musicwhiz]

Haha Arthur, that's a good idea I think! Though I am not sure where I should start in terms of compiling these articles. Perhaps this one can be the first?

That said, I think we are still quite a long way off from exuberance and euphoria. Such things are never easy to measure under any circumstances; and I readily admit that even in 2007 I was not fully aware of exuberence (though valuations were really high back then for some S-Chips, e.g. Synear was trading at 30x PER!). So such things could be an indication.

[corydorus]

There's still high amount of liquidity at low interest rate environment. Market may down abit or rise, mid term should go 4k direction. That's my personal view. Don't blame me as well for deviation 

[lonewolf]

Frankly sometimes I think we read too much in all these news articles. I have learnt to ignore all these new story (especially one from RazorTV! They are like the Sproe version of Tabloid TV!) Because they tend to over-sensationalise and its always easy for the reporters/editors to do selective reporting.

My views is that on any given point in the cycle, there will always be winners and losers. The fact that is is reported more often in the press may or may not be an indication that the party is about to end. The simple fact is no one is any wiser until the music really stop. Any sudden destabilising geo-political event can just as easily stop the music without any of us seeing it - either in the charts or in the economic news or from any hundred of new article on who's making or losing money. The Lehman collapse is a good example.

I do agree with hongonn on his observation with the 2nd liners stocks. My own experience seem to mirror his own but it was only recently that I realised this as I took a look at the individual performance of some of my 2nd liners stocks in the last bull cycle of 2007.

Remember that hindsight is 20-20. No one can claim to have the foresight until it becomes hindsight.