The problem: mixed reactions in the market and uncertainty.
Our strategy view: Strengthen your bases and raid for occasional profits; adopt a wait-and-see strategy and focus on wealth accumulation in the mean-time.
In other words, look at instruments that help strengthen your financial base for the mid- to long-term (e.g. bonds, mutual funds and investment-linked insurance products) Real assets like property are also a good idea, especially given mortgage interest rates are still low at the moment, and should provide you some amount of leverage. Our take is that since investors in the market can’t seem to make up their minds at the moment, this is probably a good time for you to take a step back and focus on strengthening your mid- and long-term financial objectives—in other words, build future capabilities for yourself and accumulate your wealth.
It's essentially building a larger war-chest for the future when others are depleting their in current battles and taking even larger losses.
The problem is that many of us are so focused on short-term gains and profits and wave away the need to think about the mid- and long-term even though we know it’s important, and very often it’s the short-term focus that gets us stuck. I have to admit, the mid- and long-term view isn’t attractive, and certainly you don’t get to see the sexy returns, but given the current climate, planning for the future isn’t a bad idea after all.
Of course, that is not to say you can’t get a slice of the action that’s going on at the moment: sporadic “raids” would help you realise some short term gains. If stocks are something you’re staying off at the moment, try commodities, especially gold.
But the idea here is to remain focused for the mid- and long-term, strengthen (for some it’s re-build, even) your financial base, and pretty much wait for the market to sort itself out. Particularly for those of us who picture ourselves kicking off shoes, laying down on a tanning chair and sipping tequilas by the beach as the ideal lifestyle, it makes sense to think about protection and security for now until we get a better idea of where the market’s headed.
Our strategy view: Strengthen your bases and raid for occasional profits; adopt a wait-and-see strategy and focus on wealth accumulation in the mean-time.
In other words, look at instruments that help strengthen your financial base for the mid- to long-term (e.g. bonds, mutual funds and investment-linked insurance products) Real assets like property are also a good idea, especially given mortgage interest rates are still low at the moment, and should provide you some amount of leverage. Our take is that since investors in the market can’t seem to make up their minds at the moment, this is probably a good time for you to take a step back and focus on strengthening your mid- and long-term financial objectives—in other words, build future capabilities for yourself and accumulate your wealth.
It's essentially building a larger war-chest for the future when others are depleting their in current battles and taking even larger losses.
The problem is that many of us are so focused on short-term gains and profits and wave away the need to think about the mid- and long-term even though we know it’s important, and very often it’s the short-term focus that gets us stuck. I have to admit, the mid- and long-term view isn’t attractive, and certainly you don’t get to see the sexy returns, but given the current climate, planning for the future isn’t a bad idea after all.
Of course, that is not to say you can’t get a slice of the action that’s going on at the moment: sporadic “raids” would help you realise some short term gains. If stocks are something you’re staying off at the moment, try commodities, especially gold.
But the idea here is to remain focused for the mid- and long-term, strengthen (for some it’s re-build, even) your financial base, and pretty much wait for the market to sort itself out. Particularly for those of us who picture ourselves kicking off shoes, laying down on a tanning chair and sipping tequilas by the beach as the ideal lifestyle, it makes sense to think about protection and security for now until we get a better idea of where the market’s headed.
