I would consider Reits and Business trusts (eg. Hutchison Port Trust) as Low to Medium risk share investments, with medium term timeframes (>few months). For medium risk investments, it is a little bit more complicated as compared to long term investments like Bank pref shares. Just a leetle bit, not to worry :)
To start off with for medium risk shares, there is a need at least to understand the bull and the bear market cycle. In general, people consider bull market when the STI index is trending above the MA200 (moving average 200 days). Similarly, a bear market is trending below the MA200.
In general, for medium risk investments, it is a "buy for a bull market" and a "sell for a bear market". Bull and Bear markets on the average last 2-3 yrs. So it is a buy, wait and do nothing for few months to yrs, in a bull market. Then sell when a bear market comes or when the price have reached your target or when u are too bored in doing nothing and cannot tahan anymore. Simple right? :) Do however take note that we are in the 3rd year of the bull market. Hence statistically, this should be the last year of the bull run
No comments:
Post a Comment