22 Sep 2021 - What am I planning to buy? SG Market, I'll be back

In some of my previous posts, I have shared how I have emptied my SG stock portfolio. Other than DBS going up, everything else was not so much of a waste. In fact, it was good that I left SG market and venture into a new market. The only sad thing is probably China market but it is ok. Because I am confident about China's future. 

So currently, I have a reasonable amount in my US portfolio, China portfolio, and cryptocurrencies. I am not planning to add any more fresh funds into these 3 portfolios this year. So what am I gonna do with my small little bank account that is building up monthly? Here is the plan. 

I am planning to buy the dip for SG market if there is ever a huge pullback. I repeat, it will need to be huge! Or like what Trump always says "Bigly". At the time of writing, STI is still sitting strong and flirting with the resistance of 3, 000 points. It doesn't seem to be able to go back to 3, 200 points anytime soon but also don't seem to be finding 2, 800 points soon. 

In March 2020, the worst was around 2, 200 level and then the rest are pretty much history. I doubt we will see the 2, 200 level unless there is another doomsday situation. I believe that even if China Evergrande really screwed everybody up, we will likely see 2, 900 level. Thereafter the ripple effect will bring us to around 2, 700 levels. I know I sound a bit optimistic but I believed this won't be as big as Lehman Brother. The key here is more on how will China Authority react? 

Should China Evergrande situation really goes south, Covid-19 causes more lockdown around the world and more natural disasters happen concurrently, then I think we will see 2, 200 level again. To go lower than that will likely require at least 1 or 2 big boys in the US to go down. 

Thus, my first level to watch SG market will be when STI fails to secure 3, 000 level and stay below it for a while. Thereafter, at 2, 950 will be the level where I will start to select a few stocks and set my target price. From there, it will be a time to slowly monitor and enter in batches. 

So what if there is no crash and the market goes up? 

Then good job and I will continue to do what I am doing for US and China. The only downside will be my little bank account will be taking the pathetic interest and do nothing much. Oh well. 

What to watch in SG market? 

This type doesn't need to ask. In SG it is common sense to buy banks during the dip. It works for me several times already. 

20 Sep 2021 - China Evergrande, a quick sharing

Those who have heard would know that China Evergrande is in trouble and might lead to a series of unfortunate situations. Some "experts" even tagged it as China's version of Lehman Brother. 

Demand for money to be returned. 

There are tons of videos on youtube and tiktok showing investors crowding Evergrande's building to demand their money. It is rather surprising that the authority actually let this happens and the protest is still ongoing. Those retail investors are our daily life people on the street like you and me. 

Rumour of Bankrupt 

The company has stated that the rumor is not true and they are not moving toward bankruptcy. The company does acknowledge that they are indeed facing financial difficulties but will do its best to return to norm. 

So what are my thoughts?

Well, I am not one of the GURUs on the news so my views are irrelevant. Personally, I feel that people who are speculating that another Lehman Brother situation will happen and we should hoard cash now are plain stupid. 

It is easy to write eye-catching headlines but not easy to sustain the content. I know that there are other financial sectors holding onto the bond issued by Evergrande. Thus, should there be a default, it will have a ripple effect across all sectors eventually. 

However, nobody can predict the impact. Nobody can predict what will the China Government do. Nobody can predict whether Evergrande can return to norm. 

Thus, for me, I just continue to hold the position that I believed in. 

Just my 2cents. Cheers.