Since share price would have dropped by a great amount, how much money should one invest in large cap firms during black swan events such as COVID19 and the 2007 Global Financial Crisis?

Hi Anon,

The investment amount should be commensurate with the risk appetite and overall investment objective of each clients account. Therefore it is difficult to give a specific number or % amount in response. The challenge is not so much the amount, but more the timing. Investors often get lured into buying on dips but this can also happen too early. It is only with hindsight that we know where and when we had reached the bottom.

Given these difficulties around timing, it is therefore advisable to consider a regular investment plan, committing fixed amounts in regular intervals for fresh investments.​​​

Invest only if current prices are at a discount to intrinsic values, just because it had fallen off from historical highs does not necessarily meant its a good investments as recent valuations might still be hefty (esp given the recent tick-up)