We had seen stocks tumble.
We had seen STI, Dow, S&P drop drastically, to levels yester-years ago,
Dow is around level in 1997, 2003.
This may make people wondering whether the old saying still holds
“yes to long term stock investment. no to short term stock speculation“
Buddies know, i do not buy above saying.
To me, all investment, by nature, has speculation element inside.
這世界上，可有“包吃”的？別做夢了！大家不是第一天玩股票。
現在“洗底褲”，才多少錢？
去年買，現在就虧大了。
現在便宜多了，買，敢么？也怕，不是么？
（“洗底褲” = CitiGr___）
Stock A in my pocket:
Yester-years: cost s$100k approx
2007: worth 7-digits IF sell
2008: worth S$200k approx IF sell
Yeas, the big Q is that “IF”.
Consolation:
+ share splits in 2006, &
+ 2 dividends every year so far.
Hopefully, i’ll have them in coming years & years.
By making above sentences, i’m “speculating” my “investment”, isnt it?
Stock B in my pocket:
Yester-years: cost s$150k approx
2007: worth 50% of cost
2008: worth 10% of cost
Thus, to me, stock investment, be it long or short term,
(1) speculation element
(2) importance of what we buy
(3) importance of when we buy
Back to above Dow monthly chart, it does “appear” that the risk-reward now, to long term investment (or speculation if u prefer to call it that way), is reasonable.
But, no harm wait a while, in bare eyes, financial institutes/banks have gotta shake out (i.e., banks M&A), before econ can shake up & go up.
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eidted 20081122 0341pm taipei
COE prices make a U-turn in downturn
