Investing in Uncertain Times- How to Invest After A Market Crash

Since Aug 1 to Sept 21st , the US market is down by 8.3%, Hong Kong market by 16.9% and Malaysia by 8.9%. The recent market crash in the global stock markets may have led most investors to be bearish about their actions. Under such circumstances, it is common to think that the market will drop even further!

Despite these sentiments, this is a great opportunity to relieve the golden investment rule, that is to buy low and sell high. If you believe that every cloud has a silver lining, then you will be able to foresee that this is the perfect opportunity to buy favourable blue chip stocks which have fallen by 10 – 15%, at a huge discount! If you are still uncertain about this prognosis, there’s an investment strategy that you could apply to alleviate your fears and help you maneuver and gain from the downturn.

To learn more on this topic, view our video on How to Invest After a Market Crash below

For more videos and financial tips , please go to www.yapminghui.com

About Yap Ming Hui

Yap Ming Hui is the nation’s leading authority on financial freedom. He is a revered independent financial advisor and coach, and creator of the YMH Model for Financial Freedom. In his professional capacity, Yap Ming Hui is the Managing Director of Whitman Independent Advisors Sdn Bhd, a leading independent financial advisory firm in Malaysia which specialises in helping clients achieve financial freedom by optimising their wealth. As the author of 5 bestselling books on financial freedom, Mr Yap has a regular column in the New Sunday Time, and can be regularly seen hosting Financial Freedom Minutes on NTV7 The Breakfast show. Contact him at enquiries@yapminghui.com

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2 Comments

  • CKK

    Reply Reply October 17, 2011

    Let’s be honest. If YMH is so sure the market will shoot up, he will be like Warren Buffet and plough a huge chunk of money at one go, not recommending his followers to nibble little by little. Dollar cost averaging is a coward term coined by the likes in wall streets to confused retail investors and save their asses if prices head down south further (which will be the case).

    YMH has all the guts but with no knowledge of global macroeconomics. He’s right to suggest investing when people are fearful but the time is NOT now. This is not the time to buy as global financial markets are on the brink of collapse. Beffet rule # 1 is to preserve your capital. Prices will go much lower as the EU and US financial mess play out (Belgium is latest victim and more to follow soon). Best time to buy is when you see market volume bottoming out and foreign institutional investors ownership at historic low. Using this principle, I bought Genting Bhd at RM3+ and sold all at RM11+, netting a tidy profit and retired now.

    Most importantly, read the annual report and understand the moat of the company you’re investing in. Simply recommending people to invest in share and hoping for a quick rebound is totally irresponsible. I exited the market just before the crash and still holding on to cash. My personal banking advisors at SCB and CIMB, like YMH, told me not to hold on to so much cash and to invest in shares/forex/precious metal for higher return. Like Warren Buffet said, Wall Street/Bursa/Banks are places where those driving Rolls Royce drove up and ask for investment opinions from those taking the trains to work. Tune out all the noises around you and let yourself make the call.

  • Yap Ming Hui

    Reply Reply November 4, 2011

    “Congratulations! It’s good to know that you have managed to make a significant profit from the stock market investments and have managed to retire. This shows that you are a seasoned investor who has managed to invest your money at the correct time (when the market is at its bottom) and managed to sell and secure a profit.

    My video is actually designed for non-seasoned investors who don’t know when the market may bottom. It is for those who are fearful of fluctuating market conditions after they have invested their hard-earned money. I suggest in the video for viewers to stagger their investment over a 1 year period instead of investing one lump sum. By doing so, they can feel rest assured that they will continue to benefit (buy low) even if the market continues to drop. Then when the market recovers, they can sell their investment for a profit. This strategy is definitely better than not investing any money due to fear of losing money.

    In the video, I never recommended anyone to simply invest in shares for the sake of it. In fact, I specifically discouraged anyone to apply a dollar cost averaging strategy to stock investments. I certainly do not suggest or indicate that there will be a quick market rebound.

    Also in the video, I did not suggest anyone should invest in shares/ forex/ precious metal. In fact, I have always made it a policy not to be tied to any financial institutions and I believe this is what separates me from your average personal banking advisors at SCB and CIMB. This ensures I am neutral and can provide the correct advice at the correct time to my clients. I am an independent financial advisor that represents my client’s best interests at all times.

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