Remember in December when CIMB's Kenneth Ng, wrote he expected "a brief period of sell-down in 1Q2010, then a continued rally towards the end, where a real market peak will form later in 2010." He also recommended a "strategy of buying on dips during the 1st Q, as monetary tightening could come earlier than expected". It could be turning out to be true.
1. If this is indeed just a mild correction, then the time to buy is now (this is my personal view)
Strategy: Leaving my long-term protfolio intact, I would do trading buys once correction is on the verge on being over. Currently, market still has room to fall.
2. If this is the start of 2nd phase of the bear market (highly unlikely, but never say never in the stock market)
Strategy: Still leaving my long term portfolio intact, I would look to cut losses on my current trading portfolio, and start shorting. I would also look to buy when markets has fallen to an attractive PB value for the medium term (this would be beyond the realm of trading).
At the moment, it looks like a correction, and I therefore stand by for buying opportunities on the dips.
Other than SAR, counters in my radar now include:
China Fishery
UOB
Noble
Wilmar
My choices keep increasing as the market falls lower. Isn't this cool?
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