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
Indeed, now is the time to accumulate some battered blue chip stock at intervals, although the price now is not as attractive as 2008/2009,but better than none.
ReplyDeleteHi Dividend Town,
DeleteI agree. We must learn to cancel out the market noise and stay the course on our investment journey.
Looks like time is on your side.
ReplyDeleteHi Lizardo,
DeleteIndeed time is on my side for now. The scary thing about time is that it waits for no one. We cannot turn back time. There are people who say "Oh, I wish I have started investing when I was young". But sometimes, it is too late for regrets.
A year passed without fruitful investing is a year wasted IMO......
well, everyone is waiting to accumulate at the bottom. when is it bottom no one knows hence the fear being spread.
ReplyDeleteSadly i entered just before aug 2015 when the markets started to turn. I decided to cut and roll. Not the best solution but i felt i was missing out on opportunity cost.
I have been investing for perhaps 6months.I am in my early 30s, young I suppose. my portfolio isn't now-where near yours but I am working towards it. jia you!!
Hi Potatoish,
DeleteI agree. Nobody knows the exact the bottom. Even the experts speculate. So, if one is gainfully employed with a stable income, he should stay vested and ride out the volatility in the long run.
Dun beat urself up too much in cutting losses. It is part of the learning curve. If fundamentals of the company change for the worse, it is fine to reduce ur exposure.
I could absolutely empathise with ur feelings. When I first started investing as a newbie back in 2013, the 'taper tantrums' were wrecking havoc on my REITs. But I sold off some of the weaker ones and reinvested into resilient ones. I took it as a lesson to rebalance my portfolio and strengthen it.
Anyway, stay calm, do ur research diligently and make educated investment decisions. I am sure u will be fine.
Jia You! Cheers!:)
panicked, stressed and fearful - negative emotions that arises out of intense focus
ReplyDeleteSo one can choose to focus on the positive side (like you) and claim you have a long ride down to retirement so can afford to ride the trend while others are calling it quits right now!
No right or wrong but a matter of perception, risk appetite and attitude towards money, i guess.
Positive thinking is more than just a tagline. It changes the way we behave. And I firmly believe that when I am positive, it not only makes me better, but it also makes those around me better.
Harvey Mackay
All the best to you !
Hi Mr Chua,
DeleteWell said. I believe 'Time is your friend. Impulse is your enemy'
Hello DK,
ReplyDeleteAgree. It is not as bad as 2008 levels.
And time is on our side ^^ 20/30 years.. we can wait.
Hi Heidi,
DeleteYup. Things are not as bad as the media painted. We should not be paralyzed by fear.
Agree with your assessment that there has been too much negativity in the past 2 months. I reckon it's the sensationalist financial news articles that aggravates this problem. Ultimately, if you are young and have time to ride out the volatility, you should just invest consistently over time and tune out the news!
ReplyDelete