What would your investment strategy be should a recession happen by 2019? - Seedly

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Asked by Anonymous

Asked 4w ago

What would your investment strategy be should a recession happen by 2019?

Many experts predict a technical recession to hit Singapore and the world at large. How will you capitalise on this rare event?

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My warchest would be deployed. But we don't have a crystal ball, so until the markets really drop drastically, life goes on.

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Elijah Lee
Elijah Lee

3w ago

If the markets are not in turmoil yet, I aim to keep around 50%-100% of the value of my invested assets in a war chest. So that means that if I have 100K already invested, I should have anywhere from 50K to 100K ready (usually in the form of a high interest savings account or in SSB which is easy to liquidate). This amount fluctuates as I occasionally find good buys even if the market is not in a crisis, and deploy accordingly. (e.g. I bought OCBC recently when it was oversold and used up a chunk of my war chest. Now I'm rebuilding it) When markets enter a decline, it usually lasts for some time and hence on top of my war chest I will also increase the regular amount deployed into the markets through DCA. So say if I am doing DCA to UT at $500/mth, I might aggressively up this to $750 or even $1000, on top of deploying my war chest at the right point. It's all up to the individual of course. The hardest thing is to sit on cash though. That requires discipline and patience. I hope that answers your question sufficiently.
Kenneth Lou
Kenneth Lou

3w ago

Thank You!
Josh Ng
Josh Ng
Level 4. Prodigy
Answered 4w ago

It's probably a question that I have for a long while since 2017/2018 where some of my peers were speculating a market fall since historical trends does suggest 8/9 years between financial crises. I don't disagree that human tendency is to catch prices at low prices (and they will present themselves when the crisis does happen) but its hard to put a date and time range when that will happen. In that span of 1-2 years that I'm been sitting on the fence, it's a lost opportunity as markets have been generally going up and you might be in the losing end of the bargain if you are putting money in the bank at dismal interest. So long story short, put your money to work no matter what instrument (savings bond, endowment etc.) but keep your war chest fluid to capitalize on the market recession (which IMHO, should come before end 2020). Patience and diligence wins the race.

All the best to FIRE!

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My investment strategy won’t change. I will probably top up my investments. Might do some reallocation but I won’t change my investment strategy.

Up and downs in a market are normal, and I am in for the long term anyway.

I don’t try to predict or time the market too

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Don't predict it.

If it happens, top up your investments and life goes on.

I don't need the money for at least a few decades anyway.

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Right now I am utlizing a dollar cost averaging approach and am still investing into the market. But i wont' do a lump sum investmetn due to the uncertainty in the market.

Like what Warren Buffett says, "it is not timing the market, it is about the time in the market."

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Continue to be mantain discipline. Continue with my DCA and top up when necessary

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Kai Ling
Kai Ling
Level 1. Freshie
Updated 3w ago

Buy SPY ETF, BRK/B, China ETF FXI and hold them long term. These markets will outperform the Singapore market in the long run.

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Caleb Tan
Caleb Tan
Level 2. Rookie
Answered 4w ago

Basically my investment won’t stop but I started to re-allocate part of equity to bond to balance my risk exposure and build my warchest so I can invest more during recession.

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Time in the market vs Timing the market.

if you are an income investor, time in the market applies for u most often.

if you are an growth investor, timing the market applies more often.

who makes the most depends on the market rather then timing.

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Continue what I'm doing and continue selling puts. Adjust when necessary.

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