BRACE YOURSELF FOR TOUGH TIMES AHEAD
Times are uncertain and the road ahead is rocky.
The fallout from the financial crisis is spreading to Europe already and Asia could probably be next to feel the spillover effect.
So hang on to that job, save that extra dollar and try to keep liquid or hold on to cash in the next six months or so.
During a financial crisis — don’t play the hero and make risky investments. Cash is king.
I remember my financial adviser telling me that before I even think of investing, I should make sure I have at least 3 months worth of salary in cash and at hand to keep me afloat. I believe it’s sage advice especially in times of a global economic slowdown.
In Singapore, the finance minister warned that credit crisis may impact the job market. However, the minister is confident that the country has the right fundamentals to sail through the rough patch ahead, despite concerns of slower growth this year.
In the global markets, the outlook is gloomy.
Traders say questions will linger about the effectiveness of the newly passed bailout plan in shoring up the financial system.
I had a chance to talk with Hans Goetti of LGT Bank and he says to expect the stocks sell-off to continue for sometime.
So brace yourself.
PS: Do let me know what you’re doing to stave off the impact of the credit crisis in your daily life? Personally, I have reorganized my monthly budget and have cutback on unnecessary expenses. How about you?
