Friday, April 11, 2014

Financial Crisis Throughout The Years And What Have I Learned?

Financial Crisis throughout the year
As you know, I have just kick-off my stocks investment journey recently and hence, I need to be upfront that I was not personally affected by any of the Financial Crisis that I am about to share next. In fact, during the time of crisis, it is "business as usual" to me and I didn't even pay much attention to it during that time. I just re-learned these financial crisis through recent reading and trying to relate to my investment strategy.
First, let's recap some of the noticeable past financial crisis that plagued the world market since 1997, Following are what I've got :
1997 - Asian Financial Crisis (triggered from Thailand)
2000 - Dotcom Bubble
2001 - September-11 terrorist attack
2003 - SARS outbreak
2007 to 2009 - Great Financial Crisis
During the Financial Crisis, most of the affected indexes dropped furiously and some even went into double-digits free-fall within a day. But what happen next? A few months/years after that? The market or indexes will recover and mostly will go into a healthy pre-crisis levels.
Lesson learned?
and the reverse is true too!
I know, this is nothing new and you probably knew it 20-30 years ago (or even longer) but still like to share it here as it is in line with my investment strategy of Value Investing i.e. holding on to the stock for a longer period. I said longer as I don't think I will hold as long as Mr Warren Buffett, being a small investor, I will blend it with Momentum Investing to cut the losses and reap the profits when the price is right.

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