Monday, October 27, 2008

Crisis??? Or Opportunity???

If you are reading newspaper or listening to radio recently, you should know the global share market has been dropping for quite a lot. The bankruptcy of Lehman Brothers and huge debt faced by AIG make the situation worse. Global share markets drops almost 50% from the peak at the early of the year. Crude Oil price and Crude Palm Oil price also has been dropping for quite a lot.

Look at the chart above to see the dropping since the peak of each indice. KLCI has dropped from the peak 1516 points before the general election until the latest 859 points last week. Today, HSI and HSCEI have dropped for 12.70% and 14.00% respectively in a single trading day. KLCI is unchanged due to the public holiday in Malaysia, and the KLSE has no trading. Obviously, KLCI will drop a lot tomorrow when the trading starts.

At this moment, all the papers report about the global financial crisis, unemployment rate, inflation, all the negative issues in economy. Most of the people now are so sad when talking about investment and economy. Investors have suffered a lot of paper loss now. Businessmen tell that business is not good. The whole world is so sad about the economy and investment.

So, what do you feel after you hear this? Sad? Worried? Scared? I believe most of the people will feel these, especially for those who suffer a lot from paper loss. When most of the people think like that, why not you think in another way round? Is this a crisis? Or actually it is an opportunity? Make your mind fresh and think about it properly. Really take some time to think about it…we think about it together and I will share my views and feelings here later.

“When all people is pessimistic, you should be optimistic. When all people is greedy, you should be worried” I believe most of you heard this before, but how many of us can do it?


-Financial Planner- said...

I am sure it is an opportunity because the road already full with blood and fear. My own opinion even if the market go down futher but recovery is a 2-fold or 3-fold earning, because market will never at the bottom, it always an v-shap.

leekk8 said...

Yes, you're right. The market has been dropped for almost half of it from the peak. Even if drop further, the drop is still limited and definitely the market will recover back to the peak. It may take quite some time, but definitely will recover. There is no share dropping forever, but also no share increase forever.