Economic Crisis

Some economic experts say in the paper says that the cyclical economic crisis will hit you once every 10-11 years. Last time we are hit badly...it's 1997...so timing is just perfect in the prediction.

Somehow it shows that how forgetful human being are...and just last year all the analyst are predicting ST index to hit 4000 pts and the greed factor overcome the historical trending. Now today STI = 1600 and still falling with a parachute...when will we hit rock bottom? Some doomas day believers say that this is once in a thousand year type of wave...so be prepared for the very very worst. This is the time we call the 大洗牌. Time wher big giants tumble and new giants are formed and rule the industry for years to come.

It's also the time of oppurtunity...if you somehow have the sense of smell to sniff at the right chance. Time to invest wisely...

At the very beginning of the crisis, I didn't realised that there was something need to worry about...only when the stocks have dipped 30%...then you suddenly realised what you are into and quickly go check your financial status and see how to make the bset out of the situation.

In the end I was quite relief myself to find out that beside my house, the other assets that I have only contains 25% in unit trusts and they are in CPF OA or SA. The rest of 25% long term endowment and saving and not stock related. The rest of the 50% are in cash / fixed deposits.

So yes I am of course affected by really lucky the loss are in CPF and no in cash form, and I have of no real need of them now to pay anything. So in a way I am lucky not to be affected much by the current crisis in terms of loss or need of cash.

Of course the real fear is the loss of jobs to come in the resession. Either people get retrenched or graduates can't find jobs. In a way I think school is a safety shelter in such times. Still remember in 97, people are encourage to go enrich themselves and prepare for the new oppurtunities when recovery comes. One have to be stay confident in your capability and strive for the best at such times. This is the time where survival of the fittest counts too, the one who bother who stay strong will last out the crisis. Those who always stay boarderline ...will be the 1st wave to be eliminated.

So it always help to be the best in your breed...cos this is the exact time where your diligence and hard work, your will to be better pays off. ( in good times, every one will survive u see)

Good times will be abit further away...but it will come eventually, the world did not stop spinning...it will be over the next cycle upwards ..soon hopefully. But let there be lesson learnt too!! Good luck!!