I almost made some serious investment mistakes last month. While reading various analyst's reports, I came across trading BUY calls for Bumitama Agri and Golden Agri. In what was an almost rash moment, I was very close to buying into those shares hoping to make a quick buck that just seemed so tempting to resist. After all, the upside forecasted by the analysts in their target price suggested that I will get a good return on my investment. And besides, I had also liquidated quite a fair bit of my other shares.
It was good that I was too busy to think much about it over the past weeks and so I did not enter into any positions. The prices did go up a little and finally slipped due to expected weak crude palm oil prices. Apparently, there is going to be an oversupply in the near future and palm oil prices are expected to be low in the near future.
It shows that one should not be too quick to jump into investment decisions based on other people's analysis. At the end of the day, all forecasts and projections are just anyone's guess. We can make educated guesses but that is what it remains at the end of the day - just an educated guess.
-
Civil servants or public officers in Singapore are expected to declare their financial standing when they first join and every year thereaft...
-
Trying to compile the salary pay scale for the Singapore civil service. Somehow, I only managed to find the figures for 2011. There are p...
-
In my previous article , I compared an endowment plan with an ILP. Many might think that an ILP is a silly way to save for my child's ed...
-
Everybody loves free stuff. So as part of the Christmas Celebrations, I am giving away MONEY! ANYONE can earn it. Just leave a comment on th...
-
How much does a normal or average Singaporean earn? Based on median income, that is supposed to be $2,400 per month and raised to over $300...
-
Networth as of Feb 2010 is estimated around $652,000. A slight drop from Jan 2010. The decline in networth was due to a slight drop in my ... -
Here are some frequently asked questions about sgfinancialfreedom: Q: How do you compute your networth? A: I compute my networth by adding m...
-
“We are more than that; we are in the business of creating time.” - Tay Liam Wee Mr Tay Liam Wee has an estimated networth of around S$135m.... -
As most of you know by now, I have started a POSB Kids Savings account for my child. The main purpose of this account is to save for his un...
-
I can't sleep. I am worried about my finances. So I am up now counting my money in all the places that I have. Sometimes I forget that...
whichever way you look at it, analysts are paid to write what they write.
ReplyDeleteEither by the company they are employed for, or by the Buy calls of the "sponsors" who are paying them.
this is demonstrated in the AA or AAA rating of the rating agencies of those toxic companies and their complex or structural products they are peddling, simply becos the customer is always right, and they are paying your salary.
And it is also the reason why I seldom read any analyst reports, or if I do come across them, they are more like toilet papers, to be use to wipe the a** after reading.
No offence to any analyst out there. :)
i too agree with you. We should always do proper analysis & research while doing any investment as these are all based on anyone guesses so there can be more chances of failure we should always listen to educated guesses.
ReplyDelete