Hello, Goodbye 2005

Do you like this song by the Fab4?

You say yes, I say no.
You say stop and I say go go go, oh no.
You say goodbye and I say hello Hello hello
I don't know why you say goodbye,
I say hello Hello hello
I don't know why you say goodbye, I say hello.

I say high, you say low.
You say why and I say I don't know, oh no.
You say goodbye and I say hello...

Love that song!! :)

Well... 2005 Market trading has ended.

The Bursa Malaysia Index inded at 899.7.

How?

So has 2005 been good to you?
Did you make a killing?

Or has it simply been frustrating?

Got myself thinking of what i wrote back in Oct: If Ze Market Continues to Rise

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Read this interesting piece the other day...

Asset allocation and evaluation of results

[Snip]

“During the strong market of the 1990s, most investors who rode the wave ignored traditional ideas about valuation. Some money managers remained invested on the basis of a practical calculation: "If the market continues to rise and I'm not participating, I'll lose my job. But if it falls dramatically, I'll be in the same situation as everyone else." Others were conscious market cynics who thought they could successfully exploit the foolishness of others. Momentum investors didn't need an opinion about valuation. They were consciously saying, "The market may be overvalued-we don't know and we don't care. All we know is, it's been going up, and we're going to invest as long as it does-and get off the train before everyone else." The problem lies in executing the greater-fool theory. If you get off every time the market ticks down and then reestab­lish your position when the market starts to go up again, you're going to get killed, because even rising markets fluctuate on the way up. And if you wait, you risk going down with everyone else.

[Snip]

This got me thinking.. hmm... if the market continue to rise ... am i gonna miss Ze opportunity?

Should an investor's reasonings to invest and hold a stock be based on that particular stock's underlining fundamentals or should it be based on the prevailing market conditions?

What say u?

Me? I prefer doing it based on what i know best. If a stock is over-valued, i would sell. If a stock's fundamentals is deteriorating, i would sell. If a stock is fairly priced, it simply means it is fairly priced. And if a stock is worth investing then it is worth investing. And if the management or owner of the stock attempts any funky corporate manouveres to cheat me, ain't it a no-brainer to kiss the stock goodbye forever and ever?

To base my investment reasonings on the stock market? Should i invest in a stock because the stock market is going up? Gosh! It's simply beyond me because there is simply no way i could tell if the stock market is coming or going! Me pants would definitely be on fire if ever i told u i could. So where is the market heading? Issit bull or issit bear? I have simply no idea! I dunno lah. Do you?

Anywayyyy..... in short.... i would rather miss such opportunity.... and if the market goes flying, it goes flying... so be it.... as Ah Beng Kor would sing in his bath-tub.. Que Sera Sera mah... :D

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I am glad I wasn't influenced by the market in my investing decisions.

Ze Market simply comes and goes.

Is it saying goodbye or is it simply saying hello?

Me say?

Hello 2006!!!!!

Wishing all readers a very Happy New Year.

May 2006 brings success and good fortune to all!!