Should you sell your losers when the market dips?
When evaluating a stock, focus on business performance rather than falling share prices
ON OCT 7, Citi downgraded OCBC to a “sell”, and the reaction was swift.
By the end of last week, shares of OCBC and UOB had fallen to around 11 per cent below their 52-week highs. Meanwhile, DBS was down by slightly more than 7 per cent. The Straits Times Index was around 7.3 per cent lower than its peak over the past year.
While the decline was quick, it was not a market correction; that would have been a decline of 10 per cent or more. Still, the mood has shifted just as quickly.
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