Connect with us


Finance: Market pullbacks make great opportunities

Legacy Phuket Gazette



PHUKET: Pullbacks are great opportunities to see where the strongest stocks are, allowing investors to make a watch list of potential leadership stocks or sector ETFs that are holding up in the face of bad news.

Since early March, we have been seeing the S&P 500 undergo some consolidation involving a pullback. A 2-8 per cent pullback is perfectly healthy and normal, with anything higher being more unusual, but nothing to panic about.

This time around, we saw financial stocks getting hit the most. This brings us to about 30-35 per cent cash for clients’ long-term growth accounts.

Despite the increasingly scary news (such as North Koreans with nukes), we are still seeing individual leadership stocks staying strong, while weaker stocks are leading the pullback. For instance, the tech laden NASDAQ-100 index has barely budged downward since March and many of our core portfolio holdings, such as Apple, Netflix and Priceline Group, have continued to perform well.

Small cap biotech Theravance Biopharma is showing strength as shares have closed above their IPO level for retail investors and hit all-time highs. It also moved up 20 per cent during the March-April pullback as the ‘smart money’ continues to look for and invest in strong stocks.

Large cap Celgene Corporation has been bucking the S&P 500 downtrend by moving strongly in the opposite direction.

Mid cap life-sciences cloud-computing stock Veeva Systems has not even budged downward during the pullback. Not only has it closed back above its IPO level, but its shares keep hitting all-time highs.

China-based online behemoth Alibaba Group Holding is going strong. The stock is just waiting for some sort of catalyst (perhaps the next earnings report) to break even higher.

Large cap T-Mobile US is one that I am looking to buy as shares are holding up well throughout the pullback.

The iShares MSCI South Korea Index Fund ETF is also holding up surprisingly well in the face of North Korean nuclear threats. Now would be a good time for any investor with a strong stomach for geopolitical risk to consider buying it.

What I am waiting for is confirmation that the S&P 500 pullback will reverse itself, as what we saw before the US elections was a 2-3 month pullback and a breakout once the uncertainty was over.

On the other hand, if early March was in fact some sort of market top, our stocks will likely be stopped out one by one and fall below stop loss levels to be automatically sold.

If the market is unable to find support in the near term, then we will likely raise more cash, as I always ensure there are proactive stop loss levels in place where stocks will be sold if a key support level on the downside is breached.

Watch the shares of Google and Amazon; their quarterly earning reports show they are moving to new highs. The week after the French elections saw the 8-week correction ending and the uptrend continuing higher.

Don Freeman, the president of Freeman Capital Management, is a fee-only Phuket based Registered Investment Adviser with the US Securities Exchange Commission. He has 20 years of experience providing financial planning and wealth management advice with an emphasis on investing in low-cost ETFs to both working and retired expatriates.

— Don Freeman


Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates


Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Bangkok35 mins ago

1 million Sinopharm doses arrive today

Tourism1 hour ago

Full reopening guidelines for Phuket and Samui

Coronavirus (Covid-19)1 hour ago

Covid UPDATE: 3,682 new cases, 20 covid-related deaths, provincial totals

Phuket Sandbox July 1st


Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

Thailand2 hours ago

Poll shows schools, students, parents, “not ready” for online learning

Chon Buri2 hours ago

Man returns lost parakeet, gets rewarded with BBQ

Thai Life3 hours ago

Thai Lion predicts football matches, other abilities currently unknown

Tourism3 hours ago

Reopening details for Phuket, Samui and beyond laid out

Coronavirus (Covid-19)5 hours ago

Multiple Chiang Rai schools to close after infections found

Thailand5 hours ago

Woman falls off building on Pattaya’s Walking Street

Tourism7 hours ago

Refinements to the Sandbox as the countdown continues to Thailand’s reopening

Coronavirus (Covid-19)8 hours ago

Covid UPDATE Sunday: 3,682 new infections and 20 covid-related deaths

Coronavirus (Covid-19)18 hours ago

Dole pineapple factory has 34 new Covid-19 cases, 413 total

Coronavirus (Covid-19)20 hours ago

Chinese Sinovac vaccine debuts in Singapore to high demand

Drugs21 hours ago

Drug smuggler caught in Kalasin with 300 kg of marijuana

Politics22 hours ago

Amendment to reform Constitution rejected by Parliament

Thailand4 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism4 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket4 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism4 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand5 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand5 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand5 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand5 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand5 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand5 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand5 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand5 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand5 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8