I have to admit, the recent market swings were wild! The meltdowns last week, then that crazy rebound now? Definitely a rare sight, even during bear markets.
Given how well we are connected and the proliferation of social media, I suspect that such extreme volatility is likely to continue during this unpredictable period under the Trump administration.
I’m not built for that kind of fast-paced trading. Hence, to navigate through this sea of waves, I will proceed with caution, focusing on the underlying businesses with my eyes on the long-term.
Read my latest article on The Smart Investor to find out what I am looking out for.
An Episode with My Purchase of DBS
In my previous post last week, I shared that I might add a bit more DBS Group Holdings (SGX: D05) and iFAST Corporation (SGX: AIY), and also likely to subscribe to the preferential offer of Frasers Centrepoint Trust (SGX: J69U), or FCT, in excess.
Well, that’s before the meltdowns on the local markets from this Monday.
In any case, I was surprised the price of DBS dropped below S$38 when the market opened on Monday and decided I should execute my planned trade since I was already planning to buy at S$42.
The drop lasted very shortly, it felt like an extremely short flash deal! By the time I can log in to FSMOne, the price was already above S$40. I was still ready to buy but due to the high volume transactions, the system wasn’t able to handle my trades.
Did I experience frustration?
A little. However, I was able to regain my calm and decided not to proceed with the purchase, even at a later time, when the system was operating well again.
This incident ultimately worked in my favour.
Not only was I able to buy more DBS shares at a lower price, I was also able to rethink what I want to do with my limited funds, given the latest developments.
I am shelving my plan of buying iFAST, and depending on the market price of FCT next Tuesday, adjust the amount of PO to subscribe.
So if you missed the chance to buy before the current sharp rebound, fret not. It still might prove advantageous.
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