Founder, President & CEO, SIAS
There are many worrying factors today which are affecting retail investors. We have seen terrorism causing untold misery to the citizens in France and, not long ago, even in nearby cities like Bali and Jakarta. Our prayers and thoughts are with the families of the victims. Our sympathies go out to those who are suffering and who have suffered from these terrorist acts. Terrorists want to cause fear.
Much as the perpetrators would like life to come to a standstill or even collapse, we must carry on with our lives. Whilst markets do react to these unfortunate incidents, retail investors must continue to invest. In these situations, there will always be fundamentally strong companies which could be of value. Your challenge would be to identify these opportunities and make an informed decision.
Other worrying factors, which are keeping investors away from the market, include the disputes over South China Sea, the impending U.S interest rate hike, the slowdown in China affecting global markets and huge currency fluctuations. These factors have affected corporate earnings. Consequently, some are even worrying whether they would have their jobs next year.
Retail investors must stick to the fundamentals. You must have your financial planning and for those who have done your planning, it is a good time to review it, given the current situations and do so every six months. The review may be necessary to readjust your investment portfolio to ensure that your goals can be achieved.
For the average investors, timing the market is not easy. Consider dollar cost leveraging, putting a fixed amount every month into an investment plan. If you are unable to make an investment plan, then you must see a financial planner. Investing is a journey. Ultimately, one should always keep abreast of developments in the market and continue to upgrade one's knowledge. SIAS presents many investor education programmes to help you invest with confidence. See you there!