Uphill Task to Invest in Stock Market Crisis

Invest in Stock Market Crisis

When Dow Jones Index drops below 20000 points during intra-day today (quickly recover above it, although may fall below again in near future), this is about last 3 years low. This implies an investor is saving 3 years of investing time if investing in current level. So, when one could invest in last 10 years low for a major stock index (eg. US S&P 500 or Dow Jones Index), it means the crisis helps one to “jump queue”, saving 10 years of waiting time.

So, when looking backward, history does help one to decide the entry and exit, especially the stock market cycle which could be 5 to 10+ years long. Current bull for global/US stock market (Mar 2009 – Mar 2020) is 11 years, the longest in the history of stock market so far, after US stock market lost more than 1/3 of market cap so far, Dow Jones Index falls from nearly 30000 to 20000 points in 1 month. Despite a bear market is confirmed, this is not yet low optimism < 25% based on Ein55 styles, only a mid-size bear so far.

However, the waiting time has to include the fall + recovery again, therefore some investors prefer to wait till the uptrend phase before entry which is easy to miss the boat (1 chance left) when an entry price is not defined. If an investor enters as contrarian approach first, there are at least 2 chances: fall below the desired entry price and again above the entry price after a period of waiting.

Ein55 members, please plan your entries, how many bullets to use: 1 shot or multiple shots. Don’t end up no shot at all when the game is over.

Learn from Dr Tee free 4hr investment course to plan for your “bullets” to shoot, investing in stock market with LOFTP (Levels 1-4, Optimism 0-100%, Fundamental – Strong/Weak, Technical – Up/Down, Personal – Trade/Invest) Strategies to leverage on current global stock market crisis. Register Here: www.ein55.com

You are invited to join Dr Tee private investment forum (educational platform, no commercial is allowed) to learn more investment knowledge, interacting with over 8000 members:
https://www.facebook.com/groups/ein55forum/

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)

Investing Strategies for US Stock Markets (S&P, Dow Jones, Nasdaq, Russell) at Historical Peaks

Ein55 Newsletter No 075 - image - Market Peak 2

US major stock market indices (S&P 500, Dow Jones Index, Nasdaq, Russel 2000) set new record of historical high again with 8th quarterly gains in a row. The earlier nuclear “crisis” has set a nice market correction for short term traders to buy low and sell high now.

US and most global stock markets (including Singapore) are still under a bull market but mainly suitable for shorter term trading due to moderate high market optimism. Despite at historical high stock prices, long term Optimism for US stock market is about 81%, still have room for further growth, although it is limited by probability.

One has to know own’s personality (trader or investor), designing the right trading plan or investing strategy for the current stock market. The US market is ideal for short term trading, buy high sell higher, especially after breaking 2500 points for S&P 500.

Singapore STI is still supported above 3200 points with Optimism about 48%, getting stagnant over the past few months. With global stock markets are still at relatively high optimism, market risks are getting higher but there are still opportunities for everyone but need to align with own personalities:

1) Short Term Traders: Buy High Sell Higher (Duration: weeks)

– entering after each break out of high resistance but not hesitating to exit when the signal is reversed

2) Medium Term Traders: Buy Low Sell High (Duration: months)

– buying after intermediate correction, focusing on bullish mid-term stock markets

3) Long Term Investors: Sell High Buy Low (Duration: years)

– selling stocks on hold at high optimism with declining bullishness, waiting to buy low during the next global financial crisis.

Learn further on Investing Strategies for US Stock Markets.