What fundamental has changed since 1, 3 or 12 months ago?

You can ride it out if you buy low enough. Provide you some comfort level when stocks are falling as you are still in the green.

Ride it out as you continue to earn dividends regardless of the market. Dividend reduced but you still get paid.

That's my understanding of what he meant.

For my learning, why ride it out strategy?

Not that cyclic, will drop by only x%, takes only y years to recover, hard to get in later, losses too small, extra expenses in selling and buying, etc etc?

Thanks.

Thanks. See below.

I will share some
*** I also don't need that money but I do not want to see the value dropping by half like it happened in 2008 recession. So prefer to take it out to and park it in FD etc though the return will be lower. Growing at a slower rate is preferred than loosing half its value.
A: I welcome correction as it allows me to pick good stocks at good price. That's why I kena bash in FSM thread as I was celebrating the recent down time. If you cannot tahan seeing the value dropping,  have to go for super save investment
1) FD (totally no)
2) ASNB FP
3) EPF
With this 3,  you won't get heartsick no matter what happen to the market. Sometimes not getting heart sick is better. Take your time to keep cash and equivalent when things are expensive. Don't get FOMO.

Losing half it's value and not selling won't incur anything. Only if you use margin or someone force you to sell then yeah you have lock in your losses. An investor is his worst enemy.

*** I assume you meant the dividends from that shares. But won't the dividend be less during recession? Double jeopardy - reduced share price and reduced dividend?
*** If you sell before the crash, won't you have more bullets for your safari hunting after the crash?  Ya ya, only if the crash happens!
A: Dividends may/may not drop depending on recession. Why do I say that? Solid companies like Nestlé,  TnB won't go away in a recession. Rain or shine, people still need to eat, use electricity. That's defensive investing. If a company is only paying out <50% of the cash,  dividends are more ear less assured. Just won't grow. Price drop allows me to accumulate more shares at cheap price to get more dividends.

You won't know when crash will come. You can only prepare for it by keeping cash and buying at low price. So if a crash comes along, you are prepared with cash. If you had FOMO and give chase,  then you can only seat and watch sadly. Having a boatload of cash can be a good thing in times of crash (remember I am not saying bucketliad but boatload)  That's why I keep cash when there's nothing to buy. So what kena eat by inflation? Inflation is slower than what I can pick up in a crash.

*** You must have done a lot of homework in that shares to have such faith in them! Ha. But companies are like any other things, they can change, some for the better and some for the worse.
A: you need to analyse your companies and make sure they can continue paying you.

Moral of my story
1. Keep cash when market is expensive. Don't FOMO. Is worth keeping cars.
2. Don't be afraid of crash. Welcome with open arms. S
3. Invest in good companies with payout of say 40-70% dividends is one criteria.
4. Invest in companies with increasing DPU
5. Invest in companies which manage to profit during 2008-2009. For those companies are more or less survivors
6. Invest in defensive companies.

***  It goes down by half, let it recovers after x years. I still cannot understand why is that a good strategy. Get out early and park the money somewhere first. If that company is really good, then get in again on recovery. Maybe it is easy to say but hard to do. I will be doing that soon (minus the buying on recovery). Ha.
*** See my comment above.

I really failed in my communication. Not trying to time it down to the highest and lowest. See modified Scene 3. Added in the bold dash lines to indicate the windows available.

Not looking at the highest & lowest days. The time available to sell and buy were not just weeks window but months. Yes, this time round, it may not be a carbon copy. But I believe the general pattern characteristics will be there.

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Is recent stock rout consider crash?

Percentage dropped in KLCI for the period Aug-23 (when you started this thread) to Dec-7 (2 weeks ago when you sold your shares) is  -7.20%

Let's say a person has a portfolio of RM200,000

If sell earlier on Aug-23 instead of Dec-7, the amount "saved" would be RM14,394

Ie. if sell on Aug-23, the amount "saved" should be enough to buy a Nikon Z6 + a Yamaha digital piano....

Happy new year bro !

Yes I agree with you. My calculation is just a rough calculation based on KLCI index, a broad indication of how timing of selling in a falling market would affect the returns of one’s investment

For individuals, it all depends on which individual stocks he owns. I am sure there are a few stocks did not drop, or even gain. Like some reits (IGB for example). Put in dividend or bonus issues, the returns may not be as bad

So, each individual portfolio would perform differently, but broadly, KLCI dropped about -7% for the period.

I am more interested how plumberly buy European stocks. Apparently he doesn’t want to share....but it’s ok. Do you have any idea ?

***** Mind sharing why you sold your shares earlier?

Just my view which may be totally wrong, if I based it on the volatility chart, don't think we have past the recession tunnel yet.

Maybe on the way to the tunnel.

In 2008, VI went from 21 to 79 in 56 days. That recession was one of the worst. Will the next recession be a mild one or a really bad one?

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I am waiting for Q4 earnings starting this week ! If bad earnings by the banks, sure everyone scared again .

Citi and jP Morgan miss earnings but stocks still rocketing up..

The market is on random walk in the short term.

Because US Feds are more careful today !!!

Guys,... the moment the US Shutdown matter is resolved,... really,... no time to buy anymore. My instincts !!!