Haha.....Great Singapore sale.....20% discount on most items.......Undervalued blue chips??....

I have not researched on many companies yet due to my lack of time. I also do not want to recommend any particular stocks for fear that I may cause anyone to lose money.  

However, I think most blue chips are worth investing now at this moment. Just buy in and accumulate slowly from this period until next year. There is no guarantee that the stock market will not drop in near future before the real recovery comes, so please be careful to accumulate slowly upon opportunities. Make sure one does not stay out 100% cash on the sideline. Make sure some of the cash is already invested and there is always reserve cash (bullets to shoot down any potential targets that come along upon any opportunity-dip in prices). I believe this is a wise way to invest over this period (not stay out completely but invested and still have room to invest further upon dip in prices).

Rate of returns is dependent on the length of time one stays invested in the market. Usually, it is that small number of days in a year that show up spectacular gains that if an investor stays on the sideline, he will miss that sharp gain. For example, had an investor stayed on the sideline from last year October to this year March, he will have already missed the recent sharp rally. I am not MFT. However, the stock market will continue to rise further in future. We just don't know when this will be realised (maybe a month's time or one year's time? It is anybody's guess.)  

As for blue chip companies, market leaders like Keppel Corp (world largest oil rig builder), SPH (monopoly of Singapore newspaper print and publishing), CapitaLand (Southeast Asia largest property developer) are worth looking at. I don't consider telcos like Singtel and Starhub because of their intense competition in the Singapore market which may reduce their earnings due to price competition. The prices of many blue chips may be steep compared to March lows, but not grossly overvalued yet. So, if one invests in them with a long term mindset, one should expect decent rate of yearly returns (good dividend yield and stock value appreciation) with minimal risk of loss of capital.

Having stable established blue-chip companies in one's stock portfolio provides a stable platform from which the returns collected from dividends can be used to reinvest in other good growth stocks belonging to non-blues.

<If one has already missed the recent sharp rally, one will have already missed out on a good opportunity to buy at low undervalued prices of many stocks few months back. However, should the stock market continue to rise inevitably in future, it will be another blow to the investor should he refuse to invest over this period. Then, he may in future convince himself that market has recovered and he will be one among the crowd to chase after grossly overvalued stock prices waiting for the next bear to again wipe out his small gains.> 

<Short-term wise the stock market is unpredictable due to many factors resulting in volatility. Long term wise, the stock market can only recover and one can invest gradually in good stocks over this period to anticipate the recovery in future to come.> <Should one tries to time the market short-term wise and makes money, good loh. If one does not, don't blame anyone or anything. Blame it on luck since stock market is unpredictable short-term wise.>

<Lastly, please take my sharing with a pinch of salt. This is not a call to buy or sell any particular stock mentioned in my sharing. Just my two cents worth. Happy investing!>

hi jeremyow

Would you mind sharing which are those that are undervalued at present time? I am waiting to buy those blue chips that are grossly undervalued. Thanks.

The right time to buy is when everyone have lost money...

Recently, about a 3 weeks ago, the newspapers featured an article revealing many people have made good money...

Now, that's the worst time to jump in and buy... because as you have seen see, the market was starting to pull back already.