A Sea of RED

Almost everyday, I see a sea of RED in worldwide stock indices. If I say that I feel nothing, then I am lying.

I recalled some months before year 2007 ended, my best friend told me proudly that his profit from stocks has rose to 20k. Recently I met him and he lamented that he has lost 20k within 2 months! His tidy profit has been wiped out during the recent huge selling off.

What can we do? Or can we do anything? Nothing much!

We can only continue to
(1) invest in low-cost well diversified funds and
(2) invest for long-term, so that the good and bad years can be averaged out.

I adopted this method. I invest a small portion of my salary monthly into some funds. Although they are not doing well now, this is an opportunity to buy funds at a lower price as compared to last year's. What goes up will comes down, and what goes down would eventually comes up. So the markets would eventually rise and I would be able to accummulate a handsome profit when I retire in 20 years later.

If you have any queries on insurance and investment matters, please feel free to email rogerlcf@aia.com.sg or call 90887946 for a non-obligation consultation.