Most markets closed up in the first week of 4th quarter 2015, after weeks of trending down since end of May. Hang Seng Index was one of the best performing among all the markets, after taking a break from National Holidays, it closed +659 points, equivalent to 3.17%.
However, Hang Seng Index had retraced 24% from its 52 weeks high back in April. Speaking about that, Hang Seng Index was not as bad as Shanghai Composite Index. After the bull run took off early beginning of the year, Shanghai composite Index year to date experienced losses of 41% from its 52 weeks high. Not only that, DJIA, the European Index and other Asian indices too, down from their 52 weeks high.
As an investors, definitely not happy seeing the paper losses since the second half of the year. As a traders, the volatility presents opportunities to make money. Of course, it comes with risk too.
There is 13 trading weeks left till a brand new year 2016. So, what should we do now? What can we buy now? To buy now or later? How long do we want to hold it for?
For us at J&M, we would like to look for undervalue stocks where the fundamental of the company still looks good despite the sell down in the past few months. Another options would be high dividend yield blue chips stocks where the price had come to a lower price. To make things easier, we will definitely consider index related funds, such as HK:2800 Tracker Fund of Hong Kong.
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