My actions in this bear market

Here's what I have strategized during this horrible bear market.

1. Console myself that STI annual returns was about 8-9% throughout the past 28 years.

Here's the chart:

From year 1987 to Aug 2015 now, the returns was 265.62%, over 28 years annualize as 9.48%.

STI has fluctuated many many times but the general trend is upward. One should treat stock investments as a long term serious commitment, and have the patience to ride out the rocky waves from time to time. My investment horizon is 10 years at least, not 10 months or 10 days.

This brings out to my next point:

2. Be patient, hold my stocks.
I read somewhere about the psychology of most investors and why majority lose money in stocks. Credits to the rightful owner of this picture (which I do not have the source).

Are you selling your stocks now? are you selling it at a loss?
Why are you selling it at a loss when you should be selling it at a profit?
Is it because your stocks are junk? wait, if you stocks are junk, why have you bought them??

This brings about to the next point again.

3. Look at the fundamentals

Although one should treat investment as a long term horizon, it is also very important to look at the financial statements of the company periodically. I have great interest and excitement whenever I look at the company's financials!

Is the company doing reasonably well and having a decent growth rate? how is the industry doing? how is the management? what have they conveyed as their growth strategies?

If the company does not seem to be doing well either because the company is lacking in groove, lacking in management leadership or generally because the industry has slowed down and show no signs of improving, then yes, it is time to cut your losses.

Other than that, if the company has strong fundamentals, it is best to HOLD and not sell at FEAR. pls omg.

4. Dollar cost averaging
'Dollar cost averaging' is an investment term used to describe the purchase of unit trusts. However, the principle can be applied when buying stocks.

It generally means that one can buy stocks gradually, inching bit by bit when stock prices changes.
Meaning:
500 lots at STI ETF $3.02
500 lots at STI ETF $2.80 ( if it really goes this low)
and then buy again when it drops further till when it finally starts going up.

This will mitigate the loss as the stock price is averaged out. Eventually (perhaps years later) when the stocks go up again, that's where the profits can be seen.

That being said, I am going to buy STI. I do have other blue chip stocks in mind that I think are really undervalued but I will not be sharing it here.

Till then, I will also not be logging into POEMS to check my portfolio. x.x

My portfolio in this terrible market

Omg the stock market has fallen from a high of STI 3500 during its Peak to the current 3195 now.

No idea when is the bottom. However, my portfolio has remained relatively 'unscathed'.

To recap, this was how my portfolio looks like and I explained briefly here.

The majority of my stocks are Trust  & Reits and as they are more stable, they form a good backing for my overall portfolio. I am still gaining a net positive in these Reits and as a result, they mitigated the loss in my blue chip and growth stocks.

My reits stocks: AIMS AMP, Keppel DC
My trusts stocks: Capitamall (waiting for a better price to sell), FrasersCentre point trust
My blue chip stocks: Keppel, StarHub, Raffles Medical
My growth stocks: Q&M, Amtek Engineering, Hyflux, Alibaba

Sigh. If only entire portfolio is made up of Reits right? Yeah.. during a downturn, I think that way. But when it is bullish, things go the opposite way and I contemplate why I didn't buy more growth stocks. (lol)

Reits, bullish or bearish, they are relatively stable.