Today is Friday, so STI's recovery certainly has something to do with short covering. Nonetheless, the market was also reacting to possible actions by European Central Bank (ECB) and other central banks.
I sensed that the market might have hit the bottom and would start to recover, I decided to make some purchases using fund in my CPF OA.
My portfolio has recovered some ground and the loss YTD has reduced to 3.2% and loss calculated based on the amount invested is 8.8%. Cash level has dropped to 36.6% after the purchases.
While I feel that values have emerged and I should be ok eventually if I take a long-term view; occasionally the fear of permanent loss of capital in certain stocks crosses my mind. What gives me comfort is I try to look at the total portfolio return instead of focusing on losses of individual counters. I also take comfort by looking at the yield of my portfolio, which averages about 6.1%. I know I will be alright 2 to 3 years down the road.
Self-doubt does occur even for me. It is very important not to deviate but stick to the game plan. Be able to control one's emotion is not easy but that is a very important attribute of a successful investor.
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