Asked by Anonymous
Asked on 30 Jun 2019
Many experts predict a technical recession to hit Singapore and the world at large. How will you capitalise on this rare event?
Top Contributor (Nov)
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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02 Jul 2019
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
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!
Top Contributor (Nov)
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.
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."
Continue to be mantain discipline. Continue with my DCA and top up when necessary
Buy SPY ETF, BRK/B, China ETF FXI and hold them long term. These markets will outperform the Singapore market in the long run.
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.
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.