Wah, the stock market these days can make anyone sian! Seeing your investments go down can be quite a shock, especially for Singaporeans who are trying to plan for the future. But don’t kan cheong spider just yet! Let’s break down what’s happening and how you can navigate this rollercoaster.
Market’s Current State
- The stock market has been experiencing significant volatility, leading to concerns among investors.
This is the first time I’ve seen the stock market drop to such an insane level before. I think this is an even larger drop that the 2008 recession already!
- However, experienced investors point out that previous market downturns, like the 2008 recession and the COVID-19 crash, were arguably more severe.
I think you need to refresh your knowledge of the 2008 recession if you think these few days is comparable.
- Many Singaporeans are seeing paper losses, not just in stocks, but also in foreign currencies like NZD and AUD against the SGD.
- Despite the downturn, some investors are seeing this as an opportunity to buy stocks at lower prices.
Challenges Faced By Investors
- Many new investors are panicking due to their lack of experience in dealing with market volatility.
Can tell a lot of kids here never seen proper bear market before. If you can’t stomach this kind of volatility then it’s time to exit and buy FD
- The fear of losing money can lead to impulsive decisions, such as selling investments at a loss.
- The proliferation of finance influencers may have created unrealistic expectations among new investors, leading to disappointment during market downturns.
Good! Hopefully all the finance influencers and Adam Khoo 2.0 will disappear.
- Some Singaporeans may be overexposed to certain markets or currencies, increasing their risk.
Actionable Steps for Recovery
- Consider Dollar-Cost Averaging (DCA) to take advantage of lower prices and build a long-term investment portfolio.
I feel excited. Alot of stocks with good entry points. Im investing as much as i can now. One side thinking of whether i should put more into berkshire in the future
- Reassess your risk tolerance and investment strategy. If you can’t stomach the volatility, consider less risky options like fixed deposits.
- Remember that you only realize losses when you sell. If you believe in the long-term potential of your investments, consider holding on.
Technically you only lose money if you sold. If you haven’t, then your holdings lost value. Small but important distinction.
- Do your own research and avoid blindly following investment advice from social media.
- Stay informed about market trends and economic developments, but don’t let short-term fluctuations derail your long-term financial goals.
