A few people have asked the wisdom of my advice to gradually sell off their equities as the stock market rebounds. I've mentioned that I expect indices to rebound in the 4th quarter of 2011. We may face a correction in Nov but a strong rebound in Dec 2011. Indeed I expect a correction of the STI to as low as 2750, giving up 50% of the gains made in the Oct rebound. But by the end of 2011, we may reach 3050. It will attract a lot retail investors who think that the bull is back.

If you look at the anatomy of a bear, there are plenty of rebounds, so much so that the rebounds almost touch the highest point. The subsequent sell down is usually swift.

Nothing is 100% ever. I will continue to reduce European Bank perps and stocks by end of 2011. It's up to you.