JCI Fall, Hold "Cash" or Keep Borong Share?

JAKARTA, KOMPAS.com – Signs of discontinuation of the composite index of stock prices (IHSG) have not been seen. Although Wednesday (02/04/2018) JCI is jumping 1.77 percent at the level of 5733. But, the index has further weakened 0.93 percent since the start of this week.

There is a popular school that says, the decline in the index is actually an opportunity to buy shares. Because the price is cheap.

So, which school is still relevant in the current conditions? In addition, they are not some private investors whose funds are limited. Or, just now the situation money is the king

" Cash is the king only if great accident now he does not … There is no indication that the market is crushing, "Obviously, equity investors, Sem Susilo, quoted by Kontan.co.id, Thursday (5/7/2018).

Indonesian economic fundamentals are quite solid. A number of components of the global economy are also still in reasonable condition. Thus, the current decline is only cyclical by the tension of the trade war between the United States (US) and China.

Thus, the logic of the situation as it is today is only temporary. Because, if the trade war of the two countries lasted, their own economy will be damaged. Are the two municipal economies wanting the economy to be destroyed?

On the basis of these considerations, Sem still holds the school of time to make reservations when IHSG falls. But, stay with the rules.

Set aside 50 percent of the investment capital held for initial purchases. The remaining 50 percent is used to build reserves.

"The remaining 50 percent is used to book once an average decline if the price fell by 20 percent of capital.If healthy stocks are thrown out of panic, the average decline is sufficient, because the healthy stock at basic price is certainly hard to fall by 20 percent, "Sem said.

The capital stock can be used for rapid daily trading according to the dynamics of the market. According to Sem, it's a healthy investment. (19459006)

This news was broadcast in Kontan.co.idd under the title: When JCI Falls, Is Money King or Keeping His Stocks?