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Saturday, November 10, 2007

A good time to invest in the stock market

Hi Mr. Tan,

The stockmarket has corrected. When is a good time to invest in the stockmarket? At what level?

REPLY

It is difficult to pick the bottom. Some people think that it is all right to invest when the market has dropped 10% from its peak. Based on this formula, the right level is 3,500 on the Straits Times Index. I prefer to wait for it to drop further to around 3,300 on the ST Index.

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