make money in 2009 , 2
Mr Loh Hoon Sun, managing director of Phillip Securities
What was the best and worst thing that happened to you financially this year?
My assets are worth much less now than a year ago, but I am not alarmed. I have lived through many market cycles.
How do you see 2009 panning out?
It is going to be a very challenging year for the economy and stock market. There will be plenty of bad news coming out, bad economic indicators, order cancellations, project suspension, retrenchments, poor corporate results, companies going into liquidation, and so on. The market is expecting and has largely priced in the bad news.
I feel that the market has fallen enough and the downside below this low is limited, unless something drastic happens, which we cannot totally rule out either.
It is generally expected that the current recession will bottom out in the third quarter of 2009. It will then take some time to recover. The stock market usually reacts six months ahead of the economy. The property market traditionally lags behind the stock market in both the up and down cycles.
What is one piece of financial advice you would give to a person looking ahead in 2009?
No one knows exactly where will the bottom of the market be. The rational thing for an investor to do is to slowly accumulate good quality stocks when the market is down in the next few months. A time of crisis is also a time of opportunity. We should not fall into the trap of believing that a bull market is topless and a bear market is bottomless.
Would your answer be different for a) a single, working person b) a married couple with school-going children c) a retiree?
No.
Is it a good time to buy a car or property?
It is a good time to buy a car as the price of COEs is low. For property, there is still time to pick and choose.
What was the best and worst thing that happened to you financially this year?
My assets are worth much less now than a year ago, but I am not alarmed. I have lived through many market cycles.
How do you see 2009 panning out?
It is going to be a very challenging year for the economy and stock market. There will be plenty of bad news coming out, bad economic indicators, order cancellations, project suspension, retrenchments, poor corporate results, companies going into liquidation, and so on. The market is expecting and has largely priced in the bad news.
I feel that the market has fallen enough and the downside below this low is limited, unless something drastic happens, which we cannot totally rule out either.
It is generally expected that the current recession will bottom out in the third quarter of 2009. It will then take some time to recover. The stock market usually reacts six months ahead of the economy. The property market traditionally lags behind the stock market in both the up and down cycles.
What is one piece of financial advice you would give to a person looking ahead in 2009?
No one knows exactly where will the bottom of the market be. The rational thing for an investor to do is to slowly accumulate good quality stocks when the market is down in the next few months. A time of crisis is also a time of opportunity. We should not fall into the trap of believing that a bull market is topless and a bear market is bottomless.
Would your answer be different for a) a single, working person b) a married couple with school-going children c) a retiree?
No.
Is it a good time to buy a car or property?
It is a good time to buy a car as the price of COEs is low. For property, there is still time to pick and choose.
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