Did you regret not exploiting the previous downturn?
If you had invested in blue chip stocks around March 2009, plus/minus 1 or 2 months, and sold early this year, you would have doubled your investments. Even if you sold in October 2009, just a mere 7 months after the market bottomed, you would have made a tidy 60% profit.
NOW is the time to save up cash to exploit the looming recession again.
Forget about short-term trading. It sounds like a very attractive thing to do, but the time can be better spent on advancing your career, or building up a small business. In fact, just today, Sunday Times interviewed some rich HK guy who said:
“My advice to retail investors is to really go long-term and choose the best fundamental stock that pays a lot of dividends and sit on it. About 95 per cent of traders lose money, so don’t try to be short-term traders.”
I would add: (1) if you go long-term, make sure you buy at cheap prices; and (2) if you prefer medium-term trading, like I do, learn about market cycle investing.
How much cash do you have to exploit the coming recession?
10 Comments
don’t be stupid. keeping cash during this period of high inflation will wipe out your cash.
Not holding cash now is the stupidest thing to do. Stocks have crashed to 2-year lows, already quite cheap. If you dont have cash, or worse, if you owe money (bought a big fat condo?), you can’t buy and can only wait for recovery. Maybe it’s going to be a long wait.
you should start buying now, and average down if it drops further. can’t catch the bottom, so aim for the good stocks. if you buy now, you already beat those who bought at the top.