Jan 2008 Investments

Was around 35 % vested going into the New Year. With China Milk and SMRT my big counters.

But the last day I saw Dow dropping heavy. Jia Luk, looks like it was a foreboding warning for me. I quickly pared down my holdings on the opening of 2008 to 14%. Looks like my hand itchy is getting me into trouble.

As expected, Dow continued dropping the next 2-3 weeks from 13200 to 11800+.

STI dropped from 3400+ to 2780+ about a drop of 20+%. I was already itching to go in, but I was waiting for Dow to drop before buying the next day. Monday was a US holiday you see, and STI drop 6% on Monday and about 5% on Tuesday but recovered to about 1.5%.

Well, helicopter Bernake in the early morning cut interest rate by 75 basis points to 3.5%, limiting losses to Dow. The next 1-2 weeks Dow rebounded to 12800, having 4 out of 5 days positive. STI also rebounded to 3100.

I tried to enter UOB the next day as I expected limited downside. little expect as the banks staged a late rally the day before, UOB after 1 hour + dropped into the red. I panicked and quickly cut of, sustaining losses (17.06 to 16.86). This shows that emotions is still running and affecting me. I should just wait out at least 1 week. It rebounded to a high of 18.6+...sigh.

Lesson learnt, control emotions , wait for 1 week at least. (Short covering, + oversold position. Any stable news will surge upwards)

Portfolio down by 1.3 % as compared to STI down more than 10 %.