Let Opportunities Pass By

After reading the story about Tulipomania (鬱金香狂熱), I think the market will go up even higher (maybe HSI 35,000) in near future, not because of any rational reason. Even one Tulip flower could worth people to exchange it with a mansion and buckets of gold back in 1637. Nothing is impossible.

And 857 中國石油 may hit even higher in its price, no matter there is a fact that the world dependence on fossil oil should be dropping in future years.

At this situation, I am convinced the strategy for a sane person should be 持盈保泰. It may seem dumb while the market is still rising rocket high. But there is nothing more important to preserve the capital. Once we get hurt on our capital (earn with blood and sweat), we will never want to touch the stock market ever after.

Noone knows when will the music box stop and I am certain that I don't want to be the one who is holding it when it stop. The market will go the other way with funny reasons and once when it started, it is hard to turn back.

At this moment, saying all these seems like a fool, while others buying in are still making lots of money. I am learning the way of doing it: keep the cash and keep stocks with reasonable P/E, sit tight to let "opportunities" pass by. It is not easy with all the temptation out there .......