Join us in this episode of My 2 Cents as we share how we manage and budget our finances during the holiday seasons. Happy holidays to one and all 🎄

Video link: https://www.ifasttv.com/videos/list/HEas9BBW/the-season-of-gifting!-

As the year is coming to a close, it's a good time to reflect back on what we have learnt from the stock markets over the past one year. The stock markets in 2021 has been a bumpy ride. Nevertheless, it is during such times when we can learn the most from the stock markets.

https://www.youtube.com/watch?v=jrXJRKcYlbw

TJI Lessons // Be on the right side of things

Always remember to only invest in companies with supported fundamentals such as having corporate earnings growing at a reliable pace. Eventually all stocks will face drawdowns over the passage of time, but it is those with sound fundamentals that will be able to recover eventually and go even higher.

Just because a stock is popularly traded or held by many investors do not necessarily mean that it is a good stock or that it can only go up. Sooner or later when the hype is over, the stock price will revert back based on the fundamentals.

https://www.investors.com/etfs-and-funds/sectors/sp500-meme-stock-crash-costs-speculators-48-9-billion/

In this New Year’s episode, we touch on some of our investing takeaways for 2021, our new year resolutions and upcoming trends for 2022. Video link: https://www.ifasttv.com/videos/list/CvexvB2z/taking-stock-of-2021

TJI Lessons // Markets are irrational in the short term

In the short term, share prices do not reflect the actual worth of the business. It is not uncommon to be irrationally 40-50% higher or lower than what it should be over the long run. It could arise from macros or a negative sentiment of the country, industry or company specific news which over the long term does not exactly affect the fundamentals of the business.

Remember that the point of investing in quality assets is to build wealth over time. Building wealth is the long term solution to get us out of the rat race eventually. That is why we are in it. For short term gains we are better off relying on our day job first while knowing our end goal.

-Kathy

An inspiring video for the weekends. It doesn’t matter how much you start with when it comes to investing. Most importantly is that one even get started to begin seeing the benefits. The rest will be history.

https://youtu.be/LJB61Ji7oo0

TJI Lessons // How To Keep Stock Market Losses From Scaring You

It is easy for us to relate to ourselves how much losses we may be sitting as well when coming across such articles. When investing, it is important to understand what is realized losses and paper losses. It is impossible for any investor to not have temporary paper losses because that will only mean that "stonks" only go up once you click the "buy" button. Neither can Charlie Munger or any other renowned investors have such ability. Know that paper losses of good stocks eventually will turn into realized gains. It is the realized losses of bad stocks that is permanent and kills most investors.

Investing in good assets is about playing the long game. While we are happy to materialize the occasional quick gains, the mindset must be one of having the ability to have delayed gratification. Just like for property investors, they do not check the price of their property every other day. As long as over time, there is good capital appreciation they will be happy enough. They do not lose sleep if in the short term transacted prices are below their purchase price for equivalent properties. The important thing is to ensure that at the point of purchase, it was a good buy based on the quality and the price and that's all that matters. Profits are made in the buying.

It's just that in the financial markets we are able to access the price whenever the market opens which inevitably affect some of us emotionally. Sooner or later, you have to learn to understand that in the short term, the price speaks nothing of the quality of the stock but rather the perceptions of the masses. In the long term, the stock price will eventually catch up to what it is worth.

https://www.afr.com/world/asia/singapore-s-richest-man-loses-us2b-in-two-days-20220106-p59mfc

We started the year 2022 with the stock markets seeing some pullback on concerns of inflation and rate hikes. How should investors navigate the volatile markets safely?

Join us in this short sharing session on Zoom as we give our take on the market outlooks for 2022 and how we are going to be positioning ourselves in the stock markets.

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Date: 15 January 2022 (Saturday)
Time: 10.30am (SGT)
Venue: Zoom

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Sign-up here 👉 https://us02web.zoom.us/meeting/register/tZwsceGorzIrH9AevkO634jDSVZRlzPdHMyG

TJI Insights // Pandemic to Endemic

The worst may be behind them for some of the nations as there are increasing evidence of them moving from the pandemic phase to the endemic phase.

For countries that have yet to, it seems that it will only be a matter of time. This includes Singapore as it hopes to ride through the Omicron wave without tightening too much restrictions which may seem possible so far. It may become worst before it can become better in the next few months. But eventually the crisis of our lifetime soon will likely come to pass too.

Which means that every dip or correction as a result of a variant outbreak have presented a good buying opportunity in the financial markets. This is also in line with our initial premise during the Delta and Omicron outbreak.

As investors we take calculated risk and make ongoing decisions based on the available information that we have and adjust along the way.

https://www.cnbc.com/amp/2022/01/12/uk-could-be-first-country-to-emerge-from-pandemic-expert-says.html

It's our pleasure to be voted as the Top 10 Most Popular Author on Tiger Brokers for 2021🎉. We are glad that our contents have been helpful for the investing community.

Seeing more investors improve their financial literacy and empower their financial future has been one of the most rewarding aspects of our journey in providing financial education. 🙂

While the US market had a relatively disappointing start to the new year, the Chinese market got on to a good start. In particular, the China tech stocks could be a contrarian and bottom feeding play for the year 2022 as we expect more funds to flow to them as value investors rotate out of other markets.

https://amp.scmp.com/business/markets/article/3164024/alibaba-chinese-developers-lift-hong-kong-stocks-two-month-high

TJI Lessons // The Stomach Is An Important Organ In Investing

In these recent weeks, some of you may not have been aware, but your ability to stomach market volatility and to be blind and deaf to market noises might have level up. And such experience and calmness will go a long way to help us in becoming successful investors. As we have always emphasized, in the very short term, stock prices are not always a reflection of how much they really are worth but more so to be driven by panic or greed.

And for sure, some of you may have bought some good stocks that are fundamentally sound, but are afraid to accumulate further from these big dips that they are seeing now. Remember how it feels like right now. Sometimes the very best time to buy is when we are totally not comfortable doing so. Just bear in mind not to be over leveraged or invest on borrowed money. Stay for the long haul with good stocks and you will be fine!

Tough times don't last, but tough investors do.

Wishing all of you a happy lunar new year 🧧 and may you have a prosperous year ahead! ✨

Google will be having stock split coming July. Stock splits are always welcome especially for investors who incorporate options into their investment strategy.

Till then, each option contract amounts to hundreds of thousands which is not within reach for most retail investors.

https://www.cnbc.com/2022/02/01/google-parent-alphabet-announces-20-for-1-stock-split.html?utm_content=Main&utm_medium=Social&utm_source=Facebook&fbclid=IwAR3nQBdKb7T8c6zBIViKLDUIv8AopsG07LJrYoZnVG51azWD3nSk9DbHIXk#Echobox=1643750630

In line with Chinese custom of Li Chun later this week to deposit some cash in their bank accounts to seek good luck, we will do it the TJI way by “depositing” some industrial reit shares into our brokerage for our dividend portfolio. 🧧🍍

We believe some of their prices have now become “auspicious” according to our Moneyball technical analysis.

We shared a few days back on 26 January in our closed Moneyball Investors Group that we believe there is a high probability that the US market might have bottomed and that it was an opportune time to buy good stocks that were beaten down.

What some may see as a catastrophic flood from the financial media was nothing but a cleansing bath for stocks to change hands to those with stronger stomachs. Many retail investors have either sold in panic or have not taken action to buy because of the negativity they read from analysts or financial bloggers.

The bottom line is that as long as the companies are able to keep up or surprise with their earnings, it is reasonable for share prices to move up as well. And things continue to look up at this juncture.

And most importantly accept that investing is a waiting game. You wait until you position yourself and then you continue to wait. One day, you get a windfall all of a sudden. The trick is to ensure that you stay afloat in between.

https://www.cnbc.com/amp/2022/01/30/stock-market-futures-open-to-close-news.html

Meta Platform, a growth stock, is probably going to be considered a value stock when the US market opens again. Its shares sink by about 20% at least after a weaker than expected forecast.

In any growth stock, if its trajectory appears to be slowing down, it is not uncommon for some investors to dump it without the slightest hesitation. Yes, revenue growth might be falling but with such a good discount, it becomes exceptionally cheap relative to its earnings. Opportunities to buy a good growth name for lower multiples of cashflow only comes once or twice a year for each stock. And we believe this is one of them for Meta Platform now.

Furthermore, it has future growth drivers in the pipeline as well such as its metaverse business which will help to create new streams of revenue, albeit not in the very short term.

We will be looking to accumulate more positions on Facebook at appropriate price levels based on our Moneyball Investing Methodology.

https://www.reuters.com/technology/facebook-owner-meta-forecasts-q1-revenue-below-estimates-2022-02-02/