Welcome to this week's Thursday Special!
It was a volatile day for markets. Even though the inflation data was better than expected, the minutes of the FOMC meeting suggest a recession later this year.
However, recessions don't mean losses. Even in a bear market, there are people who outperform the $S&P 500(.SPX)$.
Today we'll talk about different investment strategies for bull and bear markets or what are opportunities that not many people know about but are worth investing in.
For example, @HLPA shares with us ‘Is it wise to hold your shares till ex-dividend (XD)?’
Let us take an example. DBS has just gone XD on Monday 10th April 2023. At the close of trading before Monday, DBS was at 33.38. If you still have your DBS shares, you will get the 92-cent dividentd. Theoretically, DBS shares would be 33.38 less 0.92 i.e. 32.46 on Monday and it closed at 32.39 making it better if you had sold off before XD and buy on Monday at XD. Right now, Wednesday, DBS is trading at 32.21 making it even more atttactive to have sold your DBS before XD and buy now as it is much cheaper!
UOB, OCBC, Keppel Corp, Jardine C&C, City Dev, Capitaland Invest and Sembcorp Industries have ther XD dates soon. So from DBS experience, would you hold these shares till XD to get its announced dividend or sell off and buy back at XD price or likely lower like what DBS had turned out?
Tips:
Everyone who shares specific experiences or strategies will be rewarded.
No coins for the exact same one.
Comments
When an investment vehicle offers a high rate of return in a short period of time, investors know this means the investment is risky. Given enough time, many investments have the potential to double the initial principal amount, but many investors are instead attracted to the lure of high yields in short periods of time despite the possibility of unattractive losses.
Make no mistake, there is no guaranteed way to double your money with any investment. But there are plenty of examples of investments that doubled or more in a short period of time. For every one of these, there are hundreds that have failed, so the onus is on the buyer to beware.”