I know I should have been investing and cash saved in the bank will just depreciate in value over time.
At the same time, I am keenly aware that I suck at timing the market. However with the S&P 500 near all-time high and STI range bound for the year (at least that is how I feel), and world economy slowing – I am just waiting for the ‘storm’ to come before buying shares (which I deem as under-valued by then).
I have a weird way of looking at the overall unrealized profit and loss in my stock portfolio. And I don’t really trade (or sell) my stocks frequently. Typically if I see more red (losses), and the larger unrealized losses I have, the more I will be willing to accumulate stock. I tend to like to average down (of course sometimes I will end up with value traps or end up catching a falling knife).
A rising market is also exciting for me – it is always great to see unrealized profits.
However, like I said earlier – I feel that the STI is range bound. In March 2016, the overall profit /loss for my stock portfolio is 0%. Fast forward to Oct 2016 – it is averaging 0% to -2%. Well, of course, that is not entirely true as I have already received realized profits from my sale of Sun Hung Kai Properties shares, the delisting of Lyxor Japan ETF, Nirvana Asia (and losses from SMRT delisting).
However, nevertheless, it wasn’t the most exciting period in stocks so far (for me personally).
I don’t know when the market will crash, but I know a crash will eventually come (inevitable). For the moment it is a cash hoarding/cash making period for me. Or finding ways to generate income by other means, other than from my salary.
Currently, my war chest has been increasing and has been relatively high compared to the past few years. However, I still like to add more to it.
Work wise, the construction industry seems to be stagnating. Well, I earn a fixed salary every month – there is a limit how much I can expect in increasing the cash income from my salary. As much as I work hard (although there are times when there are little to do), I don’t think I can increase income exponentially there.
Consequently, given the stagnation in my work, I don’t think it would be wise to seek excitement from my investments. If I want excitement, I would go to the Casino, not the stock market.
Well, I have been trying out Amazon FBA. Have not actually managed to ship anything yet (probably due to the recent 1 week holiday in China, and most Chinese manufacturers don’t work during this period). Not really sure if things would work out.
It is not easy liaising with the Chinese manufacturers. So far I have spent money on samples that failed (whole batch of packages printed wrongly); manufacturers unable to send actual samples, or do actual stickers or packaging due to small quantity of one sample, difficulty in payment (had to pay via Western Union… most suppliers use PayPal thankfully); competition from the suppliers themselves, lousy designs from Fiverr designers (and often late), etc.
Till today I am unable to get a ready sample done according to my specifications…
Not easy. Every step is a learning process.