Not all blue chip stocks behave in this manner. There are mainly 2 types of stocks - cyclical and defensives.
The ones that move down quickly in a bear market and are the first to move up strongly in a bull run are generally cyclicals e.g. Keppel Corp, SembMarine.
The ones that stay quite stable or may even move against the trend are known as defensives e.g. SMRT, Starhub, Parkway Life etc.
Also, saw your comment on my website Making Passive Income
Looks like you have a good personal finance blog going on here. How about we have a link exchange?
Yes. The blues behave different, that's why I put in general. Stocks like ST engine, singtel (their cash flow more stable and defensive) are generally more defensive whereas keppel, noble, semb corp went up and down with market sentiment. However, sometimes defensive is not really defensive. When the market is super bad, how defensive also no use. Perhaps I should be clearer in my post.
Just to add: Parkway life maybe as "blue reit" but not as blue chips. Blue chips strictly should be index stocks.
Link exchange is good. Added your link to my blog :)
4 comments:
Eh? I thought its penny stocks - not blues.
Or have I misunderstood your definition of "blues"?
I've already embarrassed myself at LP's blog. So now must follow O'level top scholars - don't be shy to ask questions!
SMOL,
U ask me like that I also shy!
Penny no matter bear or bull, up or down hard to predict.
Blue - blue chips ba. but not all blue chips.
OT,
Not all blue chip stocks behave in this manner. There are mainly 2 types of stocks - cyclical and defensives.
The ones that move down quickly in a bear market and are the first to move up strongly in a bull run are generally cyclicals e.g. Keppel Corp, SembMarine.
The ones that stay quite stable or may even move against the trend are known as defensives e.g. SMRT, Starhub, Parkway Life etc.
Also, saw your comment on my website Making Passive Income
Looks like you have a good personal finance blog going on here. How about we have a link exchange?
Rgds,
Calvin
http://www.investinpassiveincome.com
Hi Calvin,
Yes. The blues behave different, that's why I put in general. Stocks like ST engine, singtel (their cash flow more stable and defensive) are generally more defensive whereas keppel, noble, semb corp went up and down with market sentiment. However, sometimes defensive is not really defensive. When the market is super bad, how defensive also no use. Perhaps I should be clearer in my post.
Just to add: Parkway life maybe as "blue reit" but not as blue chips. Blue chips strictly should be index stocks.
Link exchange is good. Added your link to my blog :)
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