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Anonymous

01 Nov 2020

∙

What is a bubble? How will it impact investors? Does it affect long term investor?

Will bubble impact long term investor? How will it impact or no matter what event it doesnt impact investor on long run? Is there different impact for those who buy etf vs shares during bubble?

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Jovan Lai

01 Nov 2020

Signs of a bubble include
1. Overvalued
2. Over-bullish
3. Indicators showing overbought

Bullish sentiment is a key indicator of a bubble
1. Fear-Greed index pointing strongly in favour of Greed
2. Bulls > Bears
3. Over confidence of majority of public. (Taking leverage, taking positions on margin, sell possessions to pump into stock market)

How it affects us as investors depends on your approach. It’s important to take a Long term perspective and see such drops as huge discounts in the market for you to buy more at huge discounts.

Those who take a more active approach can also get into hedging stratergies such as shorting the market, buying put options, buying inverse ETFs or running to assets with negative correlation to the stock market.

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Tricia Chia

01 Nov 2020

Well the precovid is a bubble, long term buy and hold should still make money. Buy more stocks in a recession..

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Rajiv Renganathan

01 Nov 2020

Bubbles are synonymous to the bubble in chewing gums. Imagine (in Singapore you can only imagine, ca...

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