With the exception of Big Cap, stock prices of many small and medium cap stocks on Bursa have seen quite a fair bit of correction. Yes, many people (me included) would have seen some unrealised gain made evaporated fast.
Many stocks that were showing good growth story and financials last year eg Superlon, SCGM, RCECap, Unisem, (Hengyuan - I am not sure about this ??) etc have come down quite drastically when the most recent performance did not meet investors' expectation.
No one knows what is forthcoming and will there be a more severe correction, that is a billion dollar question. To what extent Trump's trade tariff proposal will have on world's economy and equity market is anyone's guess. I still believe in just sticking to analysing the fundamental and growth prospect of a company. Though it will still be subject to overall economic situation but that is something so difficult to predict.
Last year we have seen the above mentioned stocks hitting all time high because of Fear Of Missing Out (FOMO). When these companies' financial performance did not meet the expectation of investors for 1 or 2 quarters, they were dumped ( well, I do not think all are under Pump and Dump game). There were various reasons cited for the under performance, mostly due to materials and labour cost escalation. With the recent price correction, I see these companies are getting more attractive for investment case. If those factors affecting the last 1 or 2 quarters performance are not expected to last or damage the fundamental of the companies, then buying them at down cycle could be very rewarding provided we have the power to hold till up cycle is back. Now, when they are selling at more attractive price, we have another fear - Fear Of Going In (FOGI)??
My question, which fear has higher risk - FOMO or FOGI? I believe you and me may have different answer. If you have a longer investment time horizon, I personally believe it is time to start the accumulation of good companies that we never had the chance to buy when they were selling at premium earlier! Well, I intend to do it in stages.
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