2 reasons why Shanghai composite is still selling down:

1. Chinese retail investors see something which we don't see. They see sinister hands propping up the markets, whether it is by the government or private corporations. Massive selloff in wallstreet, with the DJ dropping a whopping 1000 points when opened yesterday morning, before going up and closed with nearly 600 points down. So better sell now when the support is there... 5-8% drop is nothing compare to 15-20% drops.

2. It is only the late comers who are bleeding. It is still 30%+ over the 1-year period... most are still taking profits and will continue to do so when they are still in the green.

This post has been edited by j.passing.by: Aug 25 2015, 02:48 PM

yup, how to trust the sensationalised headlines when the world media is controlled by the west.
Massive plunge in China when it is up 30% over the past year. And no similar headlines when DJIA is minus 7% down over 1-year.

KLCI down earlier in the year and headlines blared that it was the worst in Asia. And some analysts said it is not reflecting the fundamentals. Could it not be that BNM and others were distracted by politics and maybe dare not do too much intervention and propping up KLCI like other countries since the world media is shining a spotlight on them?

With oil price down, palm oil down, and also tourism down, why should KLCI not go down?

Maybe KLCI is showing the fundamentals more transparently than other indices. Maybe this is the reason other indices are moving down too - because there were too much propping up distortions to the markets.

From Bloomberg, 1-year:
DJIA -6.65%
Shanghai +33.00%
Hang Seng -14.41%
Kospi -10.40%
Sensex -1.69%
Taiwan -18.26%
ASX200 -8.83%
KLCI -16.02%
Jakarta -18.45%
STI -13.33%
SET -18.38%

Wong Sifu,
Am I taking "correction" too literally? "Correction" as in how some smart analysts like to describe a sharp downfall.

Prices were previously too high, so all were corrected to a lower level where prices will be traded within a new bandwidth, somedays up, somedays down. And will take maybe a long time to reach back the overprice peak levels.

Correct or not?

If correct, then can we safely say that the prices these 2 days are more or less cosmestic up days for quarterly reports? And volatility will continue next week and more interesting with Monday holiday for us, Thursday for Hong Kong market where most China funds will not be priced, and especially next Friday before Wall Street goes on a 3-day weekend.

=============

What quarterly reports am I talking? This is still August, not September...

This post has been edited by j.passing.by: Aug 27 2015, 01:48 PM

Wong Sifu... still the sifu here anyway...

So it all - whether it is pullback, correction, bear, bull, or whatever - boils down to hindsight, after the event had happened that we know what animal it is. Just that some analysts' predictions carried more weight than us non-analysts' bs.

Sometimes there is too much info to brain; that's why sticking to UT, not stocks. This restless investor is still trying to gain an extra edge; now breaking up long-term into a series of short-term...

Cannot think like this leh, as we cannot lose what we don't have.

If we think of these costs as losses, then very difficult to survive as 'no man is an island'; we will find it very difficult to spend money on anything if we don't want to allow any goods and service providers to make any profit from us!

Simple to just think of net returns. If we spend time and effort on picking stocks on our own, then obviously we should expect better returns.

No, it is not. "Opportunity cost" is the loss of other alternatives when one alternative is chosen. And all the alternatives are equally viable and available for selection.

If we don't see the other alternatives as equally viable for selection (ie. there is no knowledge and interest to pick stocks), then there is no lost in opportunity.

"Lost opportunity is better than lost money".

not high-flyer... just kuli like you. The one major difference is that this restless investor is also lazy.

I don't think you get what I was saying; that reply on 'opportunity cost' was to clarify that it has nothing do with 'opportunity cost'.

Similarly, your "pay a bit extra" is on the wrong path. I don't think on the concept of having to pay extra, be it mgmt fee or trustee fee, to get the extra service. For example if I'm not wearing a watch, and got robbed off my wallet; I will not think that I will lost the watch too if I'm wearing one. How can I lost a watch if I don't have one?

So how to lose 1.5% or 2.0% in returns when there was no returns as there was no investments in the first place? This was I what I meant in "we cannot lose what we don't have".

Just to set this right as I feel that there was a bit too much emphasis (among newbie investors) on mgmt and trustee fees in comparison of funds offered by different companies with different fees.

In the sales brochures, the marketing team of lower fee funds will, of course, make bold emphasis on the lower fees as if the fees are paramount to the investor.

The emphasis should be more on the expected net returns that can be gained. The net returns is more important than going for funds with lower fees.

Get it?

I don't see any losses unless he is talking about stocks, not UT, and about cutting losses.

The first mantra in UT is selecting those UTs that we can have 'faith' in. It is a known fact that the stock market will go up, down or stay flat.

So why choose to chicken out and cut losess in a down market, unless:
a) it is not chicken out... but part of an intention to get back in later at a lower point.

b) don't have 'faith' in the UT... because had blindly bought into the UT, maybe just following recommendations without considering whether there is any objective in the investment.

c) it was a short term investment, but choose not to monitor the market, and missed the chance to get out at the peak. Money is needed now, so have to cash out.

If there is faith in the UT, sit out the down market... no losses... maybe no much IRR but ROI is still there.

Correction: If there is faith in the UT, DON'T sit out the down market... buy more!