Hee......stock prices rise and drop......If one has capital to buy more shares of a certain company that is good, and buys during low prices and keep on increasing one's position in the company through the years, then the amount of dividends collected will also increase through the years. At the same time, one also increases one's position in the invested company. Keep on buying sensibly into a good company. One will see his total dividends grow through the years. Then, reinvest the dividends to buy even more shares and increase the total dividends collected. Keep repeating this many times over a lifetime. One's position in a company will increase substantialy over a long period. In the end, let's say I have accumulated 100 lots of DBS shares over my lifetime, imagine the total dividends I will collect every year. Price swings doesn't interest me. They are there to allow me to buy more at low prices when prices are depressed. Just collecting the enormous dividends alone every year will be good enough for me. Even if the market remains depressed for a long time, I can still use my collected dividends to do compounding and buy more shares at a low price in a company. Then, if I decide not to do this compounding anymore and to cash out on my position, I can sell out all my shares at a good price to lock in a one time substantial profit (since we are talking about not just selling 10 lots but 100 lots here accumulated over a lifetime). The total dividends collected through a lifetime plus a one time capital gain over a large number of shares is enough to attract me on holding on to my shares through a lifetime.  

Actually I normally don't like to buy on down day but if I do only minimal lots. I like to see reversal. 1600 may be a bit too optimistic.Well let's see. For this year reporting season in US and in Singapore, we are likely to see decrease in profit in all 4 quarters for many companies. Maybe some might say the low price has already factored all that in. I am not sure about that but earning reports could depress the market further this year. Yes, I am looking more at former blue chips as they have more room to come down than the pennies. Some pennies don't have much "meat" to come down.

Like one person in forum said so, buying a "good dividend stock" works in a bull market.It does not work in a bear market.   

I think i do what u have been doing...buying on down day..but i go after blues chips only.

Thanks..

Thanks Livemore,...i think 1600 is the bottom of this bear, but look like we are going to hit this 1600 once again...i think this is a goodbye kiss before a 20% rally, like i read ... i believe a rally first half 09..

Say something for us to share...thanks for sharing.

Hi Cheongwee,

If you draw the trend line during the last bull run, you can see the STI hit the upper trend  line at near 3900 and then came down. Similarly this time round, I still believe it is in the chart to possibly predicting the bottom. The market would already have recovered at a time when you still receive bad news i.e about 6 months before economy recover