Review: The Global Sell Off

I was watching CNBC last night for an update on the US market. It collapsed 2% in the first hour of trade, and finally closing 3% down at the end of the day. I knew today would be a rough day.

Indeed, the STI Opened at 120+ points on the word "Go". I was shocked. Shocked to see my portfolio collapse. Yes collapse. This over "night" collapse is indeed a harder blow compared to last year's correction.

But for those who had bought Raffles Edu, China Hong, Sino Env at my purchase price, i don't think we have anything to worry about. The price should not drop anywhere close to below your purchase price.

This kind of correction may be good for long term investors like you. When was the last time you said "Hey, Sino is too expensive to buy now". Think this is the time to do it. But I don't recommend doing it now. Do it when the future is clearer. Buy closer to the "rock bottom". (Of course i don't think you can ever read the market to daily accuracy. )

But one thing is for sure (IMO), the STI is on its way back to the 2900+ level.

I've never recommended buying warrant but I've done it myself this morning.

I've purchased some insurance. I've bought STI 3000SGAePW70427, as insurance. My trade went thru at 0.19 this morning. This way, at least i've got something to cheer about when the market goes down.

Review: STI

Today, the STI index saw the biggest 1 day drop in a while. The STI index dropped 2.29%. The last time the STI started its month long correction that saw almost 300 points wiped out, the STI closed 3.27% over the previous day.

Today's correction is not isolated. Most international indexes (HongKong, indonesia, Korean, Malaysia, Manila, Japan, Shanghai, ShenZhen, Thailand and Sydney) saw the red, following the USA's Monday poor performance.

This could be one of the tell tale sign of a correction that most are anticipating. Whether this happens or not will depend on whether the US market continues its slide tonight or not.

For those who have not been vested in the market, i recommend against it until the outlook becomes clearer. For those who are already in the market, fasten your seatbelts and be prepared for a bumpy ride. But stay vested in the shares you already hold.