Asked by Anonymous
Asked on 03 Nov 2018
Great Question. Many would think you need cash in a Crisis more than anything else. i think the critical thing is to prepare yourself emtionally for a crisis so that when it happen, you have the financial guts to jump in and put investment money in.
The strategy that i advocate is to build a strong financial safety net with your CPF SA / MA. If you and your spouse have S$1M in retirement, your investment guts will be stronger so that you could dare to put investment dollars in a crisis.
I would usually wait till a 30% crash (ball park) before I enter a financial crisis to invest. No hard and and fast rule and no right or wrong. But note that when a market crashes, many would be fearful and believe that the market will crash further. And when the market rebounced, they usually will "aiyah".....
One more thing, I usually just invest in ETFs. Stock picking is just not my cup of tea.