Posted by: donmihaihai | August 27, 2021

Join in the fun

Whether it is “Once bitten, twice shy” or “Is the local market dead” plus my “STI lost decade”, none has good things to say about local stocks, which is the current view for local stocks. So, I think I am an outliner since I believe that the future is bright for local stocks.

Isn’t stock market is a place where majority, including the professional underperform the market and quite a big percent lost their money actually. A small percentage of the investors outperform the market over time. So, doesn’t this tell us that Stock market is not a place for group think, and yeah, and the current group think is Singapore stocks suck.

Let use back the same comparison, copied.

Out of the 4 indexes, STI and HSI are in the same situation, gone nowhere since GFC. So it is not surpurising at all that both markets are being ignored current. But let not forget that both markets went through a short bull from low point of 2003(around SARS period) to hit ATH(all time high – current cool words to use) before GFC. Currently, China tech stocks is the saving face of HK market but who is talking about the old economy stocks listed in HK?

From the low point of 2003, Nasdaq failed to recover to while S&P matches ATH  during tech bubble just before GFC. None double from their low point. What happened after GFC, is still eye popping. How many times in history has S&P and Nasdaq been performing like this? It is just like the first time the world see how Usain Bolt broke 100M world record in Beijing. Unbelievable.

still remember WB quiz?

You see lot of US companies in the world biggest companies list in 2021. Well in 1990, Japaness companies topped the list. The Bull was in Asia during 1980s and early 1990s. Nikki wasn’t the only bull market. When Asian Tigers was coined back then. Taiwan and South Korea markets while not as big as Japan, experienced the same kind of bubbles. Singapore market, also enjoyed bull market in the late 1980s till 1993. That bull followed the late 1970s bull market should be the top 2 bull markets in STI, the 3rd and 4th should be the late 1990s after AFC till tech bubble burst and the one right after SARS. Something that is being forgotten.

For HK, there was a 1987 black Monday and another in 1989 Tiananmen. So HK was in bear market or the beginning of the bull that popped during AFC.

To start trading locally in 1990, what is the chances that he was lured by on-going bull market?  Bull market suck people in, bear market throw people out.

S&P and Nasdaq at 1990 was at the mid point of one of the longest bull market in US, started around 1980 and ended in 2000. Certainly not exterme valuation.

I wish there are more researches, stories and books on the history of Asia stock markets.


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