Saturday, June 14, 2014

World Cup impact to stock market?

World cup just begin in 12 Jun, it's an four year once event. Recently, I receive many query from clients who want to find out what would be the impact to the stock market during this month's period?
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Well, unless you are new investor, most of investors are forgetful, if they don't record down "the history" and they may not know what's actually happen 4 years ago. I use to write a note on my monthly investment status, write down the reason why I buy or sell a stock, review on monthly basis and see if I follow my plan set accordingly. Even on the month I don't trade anything, will still write down the currently market position, such as total investment value base on market price and the feeling or thinking about the market condition on that time.
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I can tell you, "World Cup" actually have to major impact to the stock market, if the market trend is on the way up, it will still on it's way except slow a bit during the month. I have checked all my record notes 4 years ago, 8 years ago and 12 years ago, almost all show the same result. That's for the "note book" if not, how can I possible to remember something happen 12 years ago?
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Over these few years, I noticed my purpose or "objective" never change, I write down that wording on my first page of note book if I change to new one. My purpose of investment wording is very simple, it's "To create a consistent and stable income by invest in five start business". In fact, I learn something from the football game as well. In foot ball game we have a fix goal post, then every one will know their target or the purpose is the fix goal post. (lucky is fix one, not a moving goal post).
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So investing in stock market is akin entering a football field, we need to flexible and change the strategy according to the conditions. We may have fighter/ striker, defender in mid field and goal keeper. Sometime we need to play defensive by holding more cash, sometime we need to be more offensive by turning the cash into more stocks. Anyway, since my purpose is for consistent income, hence, more than 50% of investment are in Reits. This will ensure that I have a sound sleep at night and no need to worry much about market condition, how about you?
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1 comment:

  1. Most important is constant income and peace of mind! so true..

    ReplyDelete

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