The sharp drop in Nikkei, Hang Seng and European banks last week spooked investors all over the world. There have been whispers of 'Is this 2008 all over again?' Gold rocketed up to its peak in a year! Not only is everyone feeling 'risk off', it is 'fear on'!
As usual, we can always count on the good ol' financial journalists to tell us the possible reasons (CoCo bonds & Oil-producing countries' SWFs liquidating equities to raise funds). Thanks guys! Next time, why dun you be so kind to inform us BEFORE shit actually hit the fan? As if 'China hard landing' and 'Oil price plunge' are not sensational enough for headlines. *Roll eyes*......
In my opinion, we are no where near 2008 levels. It is business as usual for many industries, believe it or not. People are still getting on with their lives. There is a difference between being cautious and outright depressed.
For me, I am rather immune to all these headlines from wall street. I am still young, so I am more than happy to accumulate fundamentally-solid stocks at depressed prices for the long-term. The funny thing is, I see young investors (newbies) panicking when they should be the ones who could afford to chill as they have time on their side. Here's a tip to young beginner investors - you have lots of time to ride out the volatility.
Free yourself from negativity
DK
