The week starting 15th September 2008 to 19th September 2008, was a week of turbulence and turmoil in the financial markets, sending jitters from the USA financial markets spreading to the other parts of the world. For many investors and end consumers in the world, the period was getting tougher and tougher, many were asking “When would the end of the downturn be ?”
This period of market downturn started approximately around October 2007, been going down for a year and probably sliding down more in the next 2 quarters. Putting your into a “Time Machine”, track back 10 years cycle
1997 – Asia Financial Crisis
1987 – Recession
1977 – Oil Prices Shock
These were approximate time periods of the world major events that severely affected the Asia Pacific region and in between the years, we had strong growth periods and investments produced great returns around the period 2003 – 2007.
In this turbulent period, an investor (end consumer) must keep in mind
– Keep a cool head, separate your emotions from your brain, DO NOT PANIC !
– Markets will have periods of ups and downs
– Investments are for long term, with proper asset allocation and diversification
– In a period of downturn and recession, investment would be “cheaper”, as an investor, you would be able to accumulate and purchase investments at very discounted prices.
– Do a cash flow analysis, understand your Assets & Liabilities and Income & Expenses, re-analyze your entire financial portfolio
– Have faith and belief in the future, by investing, saving and planning prudently, tactically and strategically, you would grow and expand your wealth, assets and reduce liabilities
It’s a very tough period for all of us, from the end consumers to the corporate entities and world economies, we all are in these turbulence and turmoil together. As an entrepreneur, it’s also a test of my capabilities, mental toughness, emotional handling, situational handling, customer relationship management, consultancy and directional growth for the future.
Let’s all stay together and work on it together, united in strength, we would overcome the obstacles and challenges.