It seems that constant change is the new normal, after a sudden rally 2 weeks ago and a sudden drop earlier this week, the market is becoming more and more volatile, possibly due to the lack of major headlines, leaving investors to their own devices, which allows for a lot of room for change in the perception of the value of the shares. While we may have missed the bottom, a sudden drop during this period of volatility may provide an another opening for us to enter the market at an attractive valuation.
I'm still looking at Sembcorp Industries and Keppel as my next target, so I'm hoping that there will be an opening for me to enter into them at an attractive valuation. I particularly like Sembcorp Industries as its utilities business is continuing its expansion with the launching of a new power complex in India and other projects to provide energy in developing countries, which seems like a safe growth strategy for the medium term (however, in the long term, utilities may become a competitive industry as it becomes very commonplace like in developed nations currently), which may outweigh the risk of the energy market becoming more competitive in Singapore.
But other companies may also be affected by the volatility in the market, which I will try to look out for as well, but for the time being, I'll most likely focus on blue chips and companies that have strong cash positions such as Hock Lian Seng, which would be safer investments and are more likely to be able to comfortably ride out this period of storm in the market.
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