Markets will run further

After having just attended a course with Winston over the weekend, I am convinced this is a market that can run further. But, the one most important takeway that I have is that when buying stocks, it is better to take an "investment" approach, rather than a "trading" approach. This means I need at least a few months' perspective when I commit to socks. Immediately, this will change the way I trade stocks, including my current position in Guocoleisure. Although this is a penny stock, not advised at this early stage of the bull market, it is in a confirmed uptrend, and I will need to extend the time that I keep this stock, till it runs in my desired direction. Its NAV is after all, US$0.75, much higher than its present price of about US$0.38.


Found some interesting articles on the Edge supporting this view too:

By Alexander Associates:
A rise in the Standard & Poor's 500 Index's 5-month moing average bove its 15-month moving average for the first time since 2003 signals stocks are in the early stages of a bull market. The 5-month moving average rose above the 15-month line three other times in the past two decades: March 1991, Oct 1994 and July 2003. Each cross foreshadowed returns of at least 16% during the following 18 months. "Every time you see these two cross, it signifies a major event. It confirms the shift in market sentiment."

By Bob Doll of Blackrock:
From a long-term perspective, we think US stocks have the potential to deliver compound returns of 6% to 8% over the next several years. Nevertheless, investors should be prepared for some additional near-term corrective action. Stocks are no longer as cheap as several months ago, conditions may be overbought and there is still a great deal of uncertainty over the outlook. On the upside, there is still a great deal of cash on the sidelines looking to enter the markets, which could provide another jolt to returns. On balance, investtors should expect high levels of uncertainty and vlatility to continue.
We can look to the well-known quote from Sir John Templeton: "Bull markets are born on pessimism, grow on scepticism, mature on optimism, and die on euphoria." In our minds, while the period of greatest pessimism is clearly behind us, there remains a large dose of scepticism in the markets. Often, these are the best periods for equities, and we hope things are not different this time.

Here is what I need to do:

For exposure to US market:
Allocate an inital capital of S$10,000, to be invested in 2 tranches over the next few months. The first tranche of $5,000 to be invested immediately (in case markets don't correct). The second tranche to be invested when there is a correction. A third tranche of %5,000 to be invested, sometime next year. Keep this till the bull market expires in a few years' time.

In addition to the stocks that I already have on my radar screen, I want to look into these, which supposedly have significant exposure to BRIC markets: Sohu.com, Marvell Tech, Mylan Labs, Morgan Stanley and Yum! Brands.
Also, Amazon.com, Safeway, Pioneer Natural, Hess, Gringer and Applied Materials.

For exposure to S'pore market:
Allocate $30,000 in CPF for an STI stock. Buy the first tranche immediately, second tranche when there is correction, and third tranche next year. I will keep them for a few years too.