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
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