Tuesday, August 25, 2015

Markets Are Tumbling.. And Here Are The 3 Things That I Will Do

China's Black Monday has sparked the global market tumbling (or so the report says). It is truly nerve wrecking to watch the crimson tides across the board, from Dow Jones to STI.

On Monday (24/08/2015) alone, billions of dollars have been wiped out due to panic sell-off and many Exchanges have introduced some trading limit/restriction to contain the bleed. In short, the worst might not be over yet.
Following are some highlights of the crimson tides:
Dow Jones                          :  -3.58%
Nasdaq                                : -3.75%
S&P 500                             : -3.93%
Shanghai Composite Index : -8.5%
Taiwan's Index                    : -4.8%
STI                                      : -4.3%

A couple of my financial blogger friends are closely monitoring the market now and eyeing for the potential "on sales" counters to release their Titans (I mean warchest). Of course, this could very well just the beginning of yet another Great Fall and there are a couple of things we can do right now :

1. Review my current portfolio. Being a long term value investors, this episode of market volatility might not be my concern, but it is still good to review what's on my plate and decide whether to do any necessary adjustment or portfolio rebalancing. Fortunately or unfortunely, my portfolio is still at its minion size, so, it is a simpler task for me ;-)

2. Never leverage. I know many of you might think that whatever come down will go up and it is a great opportunity to trade/invest/hamtum big big and some even think about leveraging.. We don't know when we will hit the bottom and no one know, so, better don't take the risk, otherwise I am sure your stress level will be on the rise.
3. Keep calm and keep going. I know it is easier said than done, personally, my portfolio has dropped slightly more than 38% over the past weeks.. but I guess double digits drop is not uncommon in these few weeks ;-)

If you are heavily vested in the market, probably the best thing to do now is to have a break (from monitoring the prices) and have a Kit Kat.
Life goes on....

P/S : Before Dow Jones closed on Monday (24/08/2015) with a 588.47 drop, it went through a record breaking drop of -1,000 in the early session. Phew! History was made on this day!


  1. Replies
    1. CW8888 : hahaha, definitely.. Some might even need to tighten their belt during these few months lol

  2. 38% drop seems far higher than what the wider market has done. That's quite a Beta I guess. Hope your portfolio recovers in time to come.

    1. Lizardo : I will be holding for long term, so, not really bother much at the moment ;-)

    2. Time and timing. Looks like you have the time. Even though timing may have sucked. *Grin*

  3. Richard,

    Think about it! Is it better to have Godzilla portfolio and lose 38% say at least 100k losses on a day or wk. feel sad becos we r humans n learn later on.. or feels nothing bcos of the relative small size port n feel nothing?

    1. Rolf : Personally, i would choose to have Godzilla size portfolio and feel the pinch. So, yes, size does matter ;-)


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