Hong Kong Stock Market; HSI: 18,936.55
My friend started to ask me whether I am bullish or bearish with the Hong Kong stock market. The HSI reached 18,936.55 today, the peak ever since the internet bubble in Year 2000. Instead of evaluating the stock market from a fundamental analysis or technical analysis, I would like to look at the stock market from the behavioural finance perspective.
It happened six years ago, just a few months before the bubble crash. It was just amazing that everyone invested in the stock market. Every investment has good return-on-investment. Every IPO has recorded with excellent over-subscription rate. Even the auntie at the newspaper stalls, colleagues and friends who had never invested in stock market joined the crowd of “hot and fast” money! Try asking your friends, colleagues and even street passer-by, you could have a feel whether it is a hot market or not.
When the critical mass – all retail investors are pulled into the stock market, It is always the best alert signal to stop and think. It is time for discipline and control. So what did I do? My cash are still with the stock market, but “high fly” equities are swapped with some stable and dividend rich equities. My adjustment will continue in November.
1 comment:
Yes, it is dangerous, kind of. I have the book by Lam Sum Chi, telling people how to analyse stocks and invest in the stock market in a rational and reasonable manner. This book is highly recommend by the Chief Editor of HK Economic Journal. The author has been retired for a number of years and have more than enough money to enjoy the coming years. His objective of writing the book is more likely to show people how to invest, so that life will be easier.
I have been involved in the stock market for years, and I believe I have been investing in a conservative and more or less rational manner. I hope, my retired life can be easier with the return that I can secure from the market.
However, in the market, there are too many people who are just making bets, turning the market to a casino.
From a positive angle, markets are always with different types of people and my life is to deal with that. From an even more sarcastic angle, those people are to lose money so that my return can be better. Haha!
I need to look at life in different angles, so that my life can be easier. Haha!
Post a Comment