Wednesday, January 23, 2008

Were You Overjoyed or Overwhelmed by the Jan 22nd 2008 Global Meltdown in Equities?

Were You Overjoyed or Overwhelmed by the Jan 22nd 2008 Global Meltdown in Equities?

Hi! On January 22nd, stock markets around the world collapsed on rising fears that an impending US recession was going to throw the entire global economy into a tailspin.

Then, the US Fed came to the rescue with Chairman Ben Bernanke okaying a 75 basis point (0.75%) interest rate cut. As I write this on January 23rd the recovery in stock prices all over our planet seems to be measured but discernible.

So, my question for you is simple: In the midst of the tremendous drop in stock prices and the resultant evaporation of billions of dollars of equity values in every country affected, how did YOU feel?

Were you...

1. Oblivious because the stock market has nothing at all to do with your life?

2. Petrified because you saw your wealth take a steep nosedive?

3. Overjoyed because you saw the drop as an opportunity to nibble selectively on stocks or funds that you've been accumulating over the long haul?

Please let me - and all others who read this blog - know how you felt and why you felt that way by leaving a comment with your answer.

Finally, if you truly wished your personal reaction had been less frantic and a whole lot cooler and calmer, then you might want to sign up for my FREE weekly ezine GET BETTER, which aims to help people manage their time, talents and, most often, finances better. (And if you happen to be an intelligent, English-speaking professional based in my home country of Malaysia, then do note that while I wear, at different times, the hats of writer, speaker and consultant, I focus most of my time toiling away as a licensed financial planner who specialises in retirement funding solutions for 30- to 50-year-old individuals living in Malaysia. If you'd like to know a little bit about me and my consulting services, you are welcome to check out my bio.)

Bye for now.

Warmest regards,


PS. If you want to invest in a digital resource that will help you take charge of your own personal development by teaching you how to quickly craft YOUR OWN mission statement, you are invited to part with your hard-earned, selectively channelled money to buy my Special Report on that subject here.

Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here, and, if you're interested, here are some quotations he reckons are accurate, bold or cool.


Anonymous Gerard said...

Well, I just sat back and received the news with joy as I watched those around me hit the panic button, call their stock brokers and yell "Sell! Sell! Why haven't you sold?!".
Why am I so relaxed? Firstly, it is because I invest for the long term and secondly, I have Malaysia's best (maybe even the world's best) financial planner looking after the bulk of my wealth. Who is this money guru I refer to? None but Rajen Devadason.

Abu Dhabi
United Arab Emirates

Wednesday, January 23, 2008 10:14:00 PM  
Anonymous Ken Sin said...

Hi Rajen, I was not moved by the recent downfall in the KLCI as I have taken the position of wait till the market has really corrected from its high of above 1500s points. Yes, I am waiting to pick up good stocks when it happens. My unit trust position is 75% in bonds and money market with 25% still in equity.
Rgds KC

Thursday, January 24, 2008 9:34:00 AM  
Anonymous Hartini said...

Hi Rajen,

I would say my answer would be no 3. I see at as an opportunity coz for my self personally, my financial target is 30 more years. Which is for the long haul. It may have a negative impact on some investors however for me its positive and I believe in the saying that when investing, I have to put my emotions aside...and focus more on my objectives. And at the moment I see it as an opportunity that my 30 years will be less than that. Thank you.

Thursday, January 24, 2008 10:42:00 PM  
Anonymous Anonymous said...

Stock market goes up and down all the time. If you are in the long term buy more.. If you are playing contra, you better go and pray.
As for me, it's a good time to reasses my portfolio and buy whatever i fancy

Friday, January 25, 2008 11:36:00 AM  
Anonymous fckwan said...

Hi Rajen
yes having a financial plan makes decision to increase investment in selected portfolio whether shares or unit trust quick.for some excitement and risk taking fishing in trouble waters is rewarding but lest we get carried away we must remain focussed on what i learn from you through all the advice received so far.thanks again Mr.Rajen

Friday, January 25, 2008 5:33:00 PM  
Blogger foong said...

Hi Rajen
Took opportunity to increase investments in selected stocks/unit trusts based on the financial plans formulated with a lot of your help
of course took some risk to fish in trouble waters but remained focussed on financial goals again based on your valuable lessons.
thanks a lot for being there always

Friday, January 25, 2008 5:43:00 PM  

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