Invest wisely

Humans are very very peculiar creatures. The stock market is a testament to that. In 2006 and 2007, when the stock market was booming, there was a huge influx of investors. Everyone was riding on this seemingly unstoppable wave of euphoria. When I say everyone, I really mean everyone. Even the average uncle at the coffeeshop was in on it. Shares are really for those who know what they are doing. I personally think that when even the uncle at the coffeeshop without proper grasp of the english language starts to invest in shares, that's when you have to get out. However, a large proportion of people get in and then the market crashes and they get burnt.

Now however, the stock markets are at very low levels. Yet not many people are buying in. As an example, Bank of America, which is currently trading at $11+ has fallen from a peak of $50+. This provides good opportunity for investors to go and and go long on the stock. It is one of the 30 dow component stocks and it will go back to pre recession levels. It is perhaps the single best play an investor can make now that the housing bottom has been reached. Most of this housing slump started from California. Now that we are seeing an uptick in that state, I personally feel that the recession has bottomed out. I'm not saying we are seeing a recovery but I feel that the data is now not as bad as once feared.

My advice to everyone out there? Get in the market and go long. I got in after the banks sold stock for cash. As of today 4 of the 6 counters have given me double digit percentage growth.

My portfolio as of today:
Alcoa, AIG, Citigroup, Liz Claiborne, Las Vegas Sands, MGM

Recommended Remisier:
Alex Chue of Lim and Tan 81127014
www.limtan.com.sg