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No Two Ways About It. Buy!

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The time to buy has come. I've been buying stocks spread out over 3 weeks. Thinking of accumulating unit trusts (mutual funds) also especially in Greater China region where the general Chinese stock market price/earnings ratio has fallen below 10% from its heady heights of over 50%. Anyone who wants to participate in the twin economic rise of India and China can hedge and buy BRIC (Brazil, Russia, India and China) unit trusts too.

I'm fully invested into the market, over 80% of my liquid funds are in the market. Earlier ones are drowning in red and I've been buying some more. Where possible, my salary will be saved and put into investments in the next few months. Fear is at the apex now, but the measures that the Federal Reserve and Treasury Departments in US should ease the credit crunch and resolve the sub-prime mortgage crisis.

Of course the market may go down further, but I am no sage or predictor of what is to come. I just think that the market has cheap valuation of stocks so it is time to go in where others fear to tread. Buy quality, preferably those with high dividend payouts and put a bit into financial stocks and banks (just about 5-10% as no one knows if the crisis has a long way more to run or the new measures will nip it in the bud). Read this article at fool.com about why it is time to be greedy.

As the greatest living investor in our midst, Warren Buffett, is quoted as saying in the same article, "I will tell you how to be rich.... Be fearful when others are greedy. Be greedy when others are fearful". Buy. Now.

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Anonymous said...
October 1, 2008 at 2:41 PM  

well this will suck lot of blood of US people

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