Déjà vu – Singapore equity went down

It seemed so familiar. When I started investing substantially in 2008, I was hit by the Global Financial Crisis of 2008/09.

The Singapore equity nose-dived in 2008. Between October 2007 and March 2009, the Straits Times Index (STI) dropped an unbelievable 60.7% (from 3,906 points to 1,533 points). See table below.

Date STI Change (%)
30 Oct 2007 3,906 NA
18 Jan 2008 3,104 – 20.5
17 Mar 2008 2,792 – 10.0
15 Sep 2008 2,486 – 10.9
24 Oct 2008 1,600 – 35.6
2 Mar 2009 1,533 – 4.1

My Singapore equity lost 17.8% in October 2008. I did not sell out from Singapore equity back then. Nature of equity investment is that it goes up and down. Based on my available records, the value of investments declined 14.8% in August 2011 and 13.4% in January 2012. Now, the investment is down 14.5% as of this week.

Date Change in value (%)
3-Oct-08 -17.8
27-Aug-11 -14.8
18-Nov-11 -9.7
8-Jan-12 -13.4
21-Dec-12 -5.2
27-Dec-13 -8.0
31-Dec-14 -3.8
28-Aug-15 -14.5

My actions over the years were to find a suitable time to sell those non-performing stocks and to buy those stocks that were resilient to economic ups and downs. It was not a panic sale when prices were unreasonable. I chose a time when some calm had come to the market before selling. I also picked up stocks that were beaten down below their fundamentals.

Copyright © 2015, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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