Greed and Fear

This morning at around 10am, a good friend of mine send me an SMS reporting another plunge on the STI. Although this is a bad news, but I'm not at all surprised. We have been like this since the report on US sub-prime problem which resulted in huge correction in Asia market. As a follower of Warren Buffett, I continue to choose to focus on company's fundamental.

Then, separately, my good friend send more SMS reporting even further plunge in STI. Now, greed and fear finally found a place in me. I had been warning people "if you want to invest, you must first overcome greed and fear. Otherwise put your money in the bank". Well, shit happens.

I gave in and joined the queue of panic selling. My broker added more salt on my wound by telling me "there is no buyer at all for your xxxx counter".

I sold remaining counters which still sit on (peanuts) profit. This leave my portfolio with all losses. At around 4pm, STI rebounced strongly and managed to recover its ground. My good friend was sorry about it but I had no complaint. Afterall, I do believe that market uncertainty and volatility will continue for sometime. US sub-prime problem is not likely to resolve very soon. It's not a bad idea to hold more cash now. In any case, I had already met my investment target for 2007.