Analyst Reports 22: Bull Market or Bear Rally?

By Paul on May 11th, 2009

The past week has been spectacular again. Another jab in the heart.

A fellow blogger on his post, “Green Shoots” Sprouting In Global Markets, quoted a very interesting piece of article. Sometimes it makes me wonder how come the stock market does not really translate the performance of the sectors.

Given that Taiwan and Singapore are the worst performing countries in terms of GDP growth, they have certainly shot up the most in the stock market in the charts below. So much so that they are above the 200-MA mark, an almost sure indicator that the bad times are over.

According to the article above, China seems like the most promising in terms of economic growth. I believe in the long run, market performance will peg itself to the growth of the company. So I am still looking for a chance to enter my funds back into SSE again.

Alas also, my hands were itchy so i sunk some part of it into a stock I have been eyeing for sometime. Plainly because I like the stock, the nature of the business and the consistency of growth. Sihuan Pharmaceuticals have been one of the least volatile stocks around and even amidst the run up, it even dipped. I entered as it hit the lower uptrend line. This one is long term i guess, given that I am hoping to reduce my “trading portfolio” to shift more into a “value portfolio”.

I have to decide what I would really want to do for investment in the long run. Have been switching between “trading” and “investing” for too much, causing a conflict of principles. I admit that I have been doing more of the former in the past few months. This is more so in the light that things are going downhill and only TA can help one better catch a low. FA can only tell one which one is good to catch.

I pray during the bull run, my hands are not so itchy that I want to take my chips off to punt here and there.