Why I remain relatively calm this round of market turmoil

Back in 2008 when the Global Financial Crisis (GFC) was unfolding, I remember that I was very nervous with the economic crisis. I was worried about my investments. Starting last year, I witness another market turmoil of a similar global scale. Investors and fund managers are jittery and the market turbulence has not abated. Surprisingly, I was calmer than back in 2008/09.

In 2008, I parked huge sums in Currency-linked Investments (CLI), UOB Notes, CapitaLand Notes and narrowly-focused unit trusts like Middle East fund and commodity fund. After the GFC, I reduced my exposure in CLI, redeemed the UOB Notes and CapitaLand Notes, and cut out from Middle East fund and commodity fund.

Now my portfolio was allocated more widely. I diversified investments into equity, fixed income securities, CLI, insurance products and S$ fixed deposits. In equity space, I focus on Singapore equities and some regional country funds. I looked out and parked money in funds that pay regular dividends or interests. Even as the funds were below the costs when I purchased them, I am not too concerned. I am able to withstand any major fallout in some of these investments since the quantum parked in each product is now lower than in 2008.

This spreading of risk is one reason that I am feeling not too depressed this time round. As in any loss of confidence in financial markets, confidence will return some time in the future when the global economies recover.

Copyright © 2016, 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.

This entry was posted in Financial Management. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s