Buyer Beware – Ahma-nomics in Play
Remember the old adage that when everyone and their mother is putting money into the stock exchange, we should all get out? Well, this has actually just started happening. Just as Japan has their “Abenomics” policy, we have our own “ahma-nomics”, here in Singapore!
I’m surprised that nowadays students have enough spare cash (most likely from their parents) to start investing – I’m not sure if this is a good thing, but it’s definitely a good learning experience for them. Even retirees are getting in on the “hot” market now from the article – assuming that she bought her OCBC shares at 2 lots at each price, the ah ma is practically averaging her OCBC share price every 5% drop. I’m not sure if she has a good strategy, or a method to the madness.
Personally, I’m adopting a very defensive and conservative stance – slowing down my purchases, buying in small quantities (thank goodness for SCB) and planning my portfolio allocations, as I take this as a sign of a “dead cat bounce”.