Stock Market Sentiment Investing Strategy with Fear and Greed of Black Swans (多数服从少数)

Global investors and traders are worrying about the current stock market fears which may become the next Black Swan: Russia / Ukraine war, high inflation and interest rate hike, resulting in the largest dip in US stock market (13% for S&P500, 20% for NASDAQ) since COVID19 crisis. At the same time, China and Hong Kong suffer severe waves of COVID19, resulting in significant stock market correction, especially for technology stocks (eg. ATM stocks of Alibaba, Tencent and Meituan which contribute to 1/3 of Hang Seng Index). However, at the most fearful time, there is always a strong rebound in stock prices. Is it time to Buy, Hold, Sell, Wait or Shorting?

Before sharing any personal views on current stock market, Dr Tee often likes to begin with a unique “Stock Market Sentiment” Strategy with a survey for my investing workshop audience or readers:

“What do you think of the Singapore stock market trend for the next 1 year?”
A = Bear Market (STI < 10%) B = Flat Market (STI within +/- 10%) C = Bull Market (STI > 10%)

Please make your choice before continue reading further. This is an important move because you will be part of “Dr Tee Indicator” on future market trend.

The participants with diversified background and experience representing the mass market will cast their votes. Here is the latest statistics (see Figure above) based on recent survey: Bear Market (6%), Flat Market (40%), Bull Market (54%). Please compare your choice with this overall distribution on market outlook.

This unique Dr Tee Personal Indicator is making use of the psychological weaknesses in traders/investors who usually buy high (when greedy) and sell low (when fearful). Therefore, the recommendation of investing calls of buy / sell / hold, is against the mainstream view:
• Buy: when bear market view > 75%
• Sell: when bull market view > 75%
• Hold: when flat market view > 25% (current market)

The current majority market view (40% flat market & 54% bull market) aligns well with the current market trend in Singapore as Straits Times Index (STI) has been recovering gradually from low of 2233 points during COVID-19 pandemic, trading at fair price of 3337 points with uptrend potential with support of growing economy. The bearish view is relatively low (6%, less than 50% neutral line), matching the declining fear during Covid-19 stock crisis with recovery of Singapore and Asian stock markets.

This Ein55 Personal Indicator has monitored the stock market regularly since Nov 2011, successfully predicting a golden entry point to stock market after the US credit crisis in late 2011 with >75% bearish views. Unfortunately, during the next worst time of Mar 2020 pandemic, Dr Tee could not meet up with audience, therefore missing another pessimistic point (>75% bearish views) in this survey but investors won’t miss the investing opportunity with Optimism Strategy (1 of Dr Tee 55 investing styles). This unique investing methodology is consistent with the famous saying by Warren Buffett: “Be greedy when others are fearful. Be fearful when others are greedy”, but in a measurable form of investors emotions.

Response from each stock market (eg. Singapore, US, Hong Kong / China, Malaysia, etc) could be different as it greed and fear could be country or even sector (eg. technology vs value stocks) dependent as their Ein55 Optimism levels are different. If similar survey is conducted in Hong Kong recently, over 75% local investors or traders likely will have bearish views. However, no one could buy at the lowest point (if yes, then it is luck), therefore trend analysis on reversal pattern is required before Buy Low.

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Integrated Commercial Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

Dr Tee Stock Webinar