Saturday, April 4, 2020

What am I doing in past 2 economy Down turn

We are only 4 months into 2020 and it has already been a BIG year for all of us. Do you feel it? Right now, more than ever, investors need a plan to navigate this unprecedented market.
The bull market is officially over after the Covid-19 pandemic pushed fears to every major economy.
China, Europe, the US, Malaysia and none is spared. There are plenty of stocks at a "discount" right now which has down 30%, 50%, even 70% from their recent few months high! I truly believe that the first bear market since 2008 (more than 10+) could be a phenomenal investing opportunity — for investors who position themselves the right way.

Future may looks grim and most people are going to suffer financially over the next few months due to lock down and even years due to the COVIT-19 impact.

Dot-Com Crash:
In 2002 dot-com crash, I was working as Associate Technician and study part time in Singapore. At that time, the impact for me is minimal due to I am living in frugal to support my Bachelors degree fees. That is the final year that I requires to complete my thesis and fly to RMIT, Australia for presentation. There is not much saving in my account.

In that year, since it is down turn, I managed to buy a small hut in Singapore with a little Saving of SGD13,000. I have to exit the stock market before the dot com crashed. Count myself lucky at that time. Since then, I shunned away from stock market.

Subprime Crisis:
During the 2008 subprime crisis, I was working hard in my career back in Kulim time. I didn't invest in any stock. Still recalled that my Taiwanese boss ask me if I buy any stock or not? My replied was I did not and dared not too. That time, probably I missed the best timing to invest into the stock market. I only able to remember the Citibank share price plunges for nobody business. From below chart can observed that the peak is at USD550 per share in Feb 2001. During the Subprime crisis, it only worth USD15/share in Mar 2009. From there the share rebound till high USD80/share at Jan 2021.

 How about our Malaysia bank like Maybank at that time? Let's look at below chart for Maybank. From below chart can observed that the peak is at MYR 9 per share in Apr 2007. During the Subprime crisis, it only worth MYR 3.9/share in Apr 2009. From there the share rebound till high MYR 10/share at Jul 2018. Maybank has the same phenomenal with Citibank. I did trade for a few round for Maybank when it start to bounce back from RM4 to RM6. I did not learnt about the investing and only know how to buy low sell high for quick gain.


I did not pay a lot of attention with the stock market again for second time. However, I spend a lot of energy to learn property investment since 2010 till now. Past one year, I have begin to learn on the stock investing and this come the right time. Isn't this one of the golden opportunity to buy good companies and work for us?
There are some superb businesses are at a cheap sale and deep discount, it could be the best time to go for a shopping spree, that might elevate your financial well-being to the next level.
I am catching and boarding on this round of the downturn and capitalized it. How about you?

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