I haven’t blogged for a few weeks as I was overseas. When I was back, I felt so hilarious to see the newspaper headlines every day saying “investors were all surprised by the recent market rally”.
Back in early January, horrible stories covered newspapers every day. “Professionals” and “Analysts” who used to advocate how cheap the stock valuations were have given it up and started to caution investors. Many investors I met have “cashed out” from the stock market. Any new bond issue like CapitaMalls Asia bond was the hottest cake in town.
At that time, I was like an evangelist going around telling people to take the opportunity to top up their equity holdings. However, the message can hardly be communicated through. I was so frustrated and wrote an article called “how can you outperform Warren Buffett in 2011“. How? Holding Cash lor…
Take a look at the STI weekly chart below, the market was yelling at you! (I will not explain how to interpret this chart here) But how many of you chose to believe your emotion and your stock broker’s tips? How many of you ended up selling your stocks at the bottom of the market?
Recently, I was shocked to know that my mother’s stockbroker asked her to sell all her stocks before the New Year. (Yes, my mother chose to believe her stockbroker than me!) He even successfully embedded this strong message into my mother’s mind that any stock cannot be held for more than one month. I am sure that this broker had a happy new year counting the big commission he has earned from his “good” advice.
it is indeed frustrating when ppl question yr professional opinion and advice. however the advice these ppl chose to take were also from professionals.
it is difficult for laymen to distinguish between good and bad advice without proper financial education.
to make matters worse, because these ppl suffered losses taking the advice of professionals; trying to educate them is tougher as they are once bitten, twice shy.
Well said. I just think the word “professional” is sometimes abused and ppl really have no idea what this industry is about.