What should I do when the market gets boring?

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Contra
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What should I do when the market gets boring?

Postby Contra » Wed Jul 25, 2018 3:23 pm

What a boring market and what a low turnover? Only few braves left in the market. Current situation resemble me the history of CSE. I can still remember how some sold their valuable investment for a song after keeping so long and then lost some multibagger opportunity on several occasions in the past.

There are few options.

Be a mid and long term investor (we find outstanding stocks selling for a song now. By screening further, comparing with same sector and with other sectors we could pick the best lot in the market.). Do not forget to identify at least one multi bagger company. It will help us to recover losses made in the market.

For a profitable shot term trade or investments for one month to 12 months follow the trend (trend is your friend). Trading opportunities will appear when sector and industry become bullish or sudden individual bullishness.

Keep an eye on break out stocks (time to time we find breakout stocks in the market). We will continuously search and look for them without getting caught to fake rallies. Even for investors, break out stocks create some sort of encouragement.

Look for investors are coming in stocks (I found few intelligent foreign fund managers specialized in Asian frontier markets and local fund managers know how to invest intelligently and smart way. The said foreign funds have been investing in the CSE and have good experience as well. In Fact their stocks are doing well despite underperforming the market. Their ability to find out trend in individual stocks in Sri-Lanka is impressive especially in a boring market.

Other special opportunities: turnaround opportunities, oversold opportunities due to poor fundamentals but fundamentals can improve once the trend for the sector reverse. I have kept these types of stocks as well under my radar now. It is time to adjust with the market situation.

I like to stay with following rules.

Rule number one: Never make mistake again
Rule number two: Do not follow the crowd.
Rule number three: Don’t be over bullish and over bearish.

Why don’t we discuss some stocks like before? '

What are the companies which can have amalgamation or acquisitions?
Are you bearish or bullish now?
Do you take credit to buy stocks or like to reduce them?
Which companies (stocks) will have major uptrend for next 10 years while having short term cycles?
In my view some new stocks should take over at least part of leaderships until JKH recover to have some sort of break out in the market. What would be your new market leaders?

Interestingly I found some interesting things on the boring side of the market on the media as follows.

This Boring Stock Is a Truly Great Buy

No wonder this boring stock is flying under Wall Street's radar. ...

3 Boring Stocks That Could Make You Rich

June and July are usually the most boring months for the stock market

Why This Boring Stock Market Is a Good Thing

10 Boring Stocks to Buy for Red-Hot Returns

Boring can be beautiful on the stock market

Is this the most boring stock market ever? -

Ideas are welcome! Thanks
Company, stock market, politics and the economy are four different things.

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matrix
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Re: What should I do when the market gets boring?

Postby matrix » Wed Jul 25, 2018 6:30 pm

very good insight contra
Stuck in a generation where LOYALTY is just a tatoo, LOVE is just a quote & lying is the new TRUTH


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