Teh Hooi Ling wrote an article in Straits Times on 11 Feb, where she explored 8 strategies to invest in STI using various buy and sell triggers (http://www.straitstimes.com/business/invest/bide-your-time-until-a-crash-to-enter-market).
The best performing strategy is Plan A.
- buy when STI falls 20% from 9-month peak
- sell when STI recovers 50% from entry.
The current 9-month peak is 3611.
20% below 3611 is 2888.8. That’s an easy to remember number! The white line below shows where 2888 is in relation to current price.
At the current moment of writing, STI is 3369. There is another 480 points to fall before buying!
Note that the article implies that buying and holding may be better that spotting the bottom.
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