Slap an extra-absorbent diaper under your panties coz we’re in for a wild ride! One market-shaking event after another is slated to occur this week, resulting in unprecedented market volatility. Boys will hide under their momma’s skirt and grown men will shed tears. The KLCI has dropped to a historic 5-month low. The Chinese has one word that succinctly describes this chain of unfortunate events: Hailat.
Tuesday (Today): Monetary Policy Committee meeting (OPR cut likely)
Wednesday: Trump vs Biden MMA no-holds-barred cage fight (my money is on Trump coz people gravitate to tough guys during hard times)
Friday: Muhyiddin vs Everyone in WWE: Brawl For All a.k.a. Budget 2021 tabling
Glove stocks are tanking. Vaccine stocks aren’t doing better. Bank stocks? Wah lan eh, limpeh lost over 20% on CIMB and over 8% on Maybank. Paper loss, but still. There’s bad news for tech stocks too as ours tend to mirror the US, and there’s significant headwinds for tech stocks there. JP Morgan recently advised investors to take profit from tech stocks.
It seems like everything is doom and gloom. #emoforever
That’s not true though. Opportunities to purchase abound, just like during the announcement of MCO. Heavy discounts are available for many blue chip and growth stocks. That’s why having a cash reserve is important. A war chest comes into play in these times so you can pick up good stocks on the cheap.
Lesson: Always have cash reserves
Unfortunately, limpeh didn’t follow this advice. I’m the kind of guy that dumps every spare ringgit into the stock market for better returns. I believe every sen lying dormant in a high-interest savings account is opportunity wasted.
However, I have come to believe that this mindset is wrong. If I had significant cash reserves now, I can purchase many stocks for up to 20% off. Would I have earned 20% by putting every fey coin into the stock market? Highly unlikely.
As a reasonably intelligent person, I’m always driven to improve myself. I’m open to learning new things and change previous mindsets if they have been tested and found wanting. That’s how you upgrade yourself into a better you.
Everyone wishes they had dumped all their spare money into SUPERMX when MCO was initially announced but you can’t do that if you don’t have an extra sen. Stay invested, but also keep a healthy cash reserve so you have bullets when opportunities arise.
Semper paratus, financial gangsters. Always be ready.
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