Got a email from working assoc.
BUSINESS SUPPORT & PLANNING
BUSINESS BANKING
Here goes.
Recession is coming ... make your own judgment, don't panic !! Do what is wise.
The recession looks very eminent.. It is really time to take pro active steps to avoid a painful time in the next two years which is how long the recession is expected to last.
Suggestions:
1. Don't take any loans, buy homes, properties with loans, or even cash. Keep as much cash as possible.
* Or putting it cash in bank account but redrawable easily.
2. Pay off as much of personal loans, private loans, as debt collection will be hastened.
3. Sell any stocks you can even at lower prices. (Maybe not so relevant)
4. Take money off from Trust Funds. (Maybe not so relevant)
5. Don't believe in huge sales forecast from customers, be extremely prudent, lowest inventories, reduce liabilities.
6. Don't invest in new capital.
7. If you are selling homes/ properties/ cars , do it now, when you can get good prices, they are going to fall.
8. Don't invest in new business proposals.
9. Cancel holiday plans using credit cards. (Does not apply if ur loaded)
10. Don't change jobs, as companies will retrench based on 'last in first out'.
Stay cool, wait, and if you took all of the above actions and more, you probably will be better off then many.
This is not a rumor. Bear Stearns is the first of many banking and financial institutions that will start falling in the not too future. If Bear Stearns can fall, so can JP Morgan, Citibank, HSBC, and the whole world.
US economy falls, the rest will crumble. India and all those self economies will be the most protected, but not gullible. Europe may be a little stronger, but not China , another giant! Malaysia will see significant impact
2 comments:
errr.... about ur hows... have u read warren buffet's books? i think u should. and i don't support some of the hows. ok. fair enough not to take up any new loans in case of job loss. but selling shares whatever price it is? ok for this question, refer to warren buffet's famous quote. it's been in the newspaper lately. u can't miss it.
sorry for the long reply. i was actually reading up on investment articles and such before thinking of an answer to this but just to bear in mind that there's no right and wrong. it's all about experience.
ok let me go through them.
1. makes sense
2. not necessarily if u know ur job is stable and won't get retrenchment. paymentcan still be made like normal. in fact some people take their own sweet time to pay off their mortgages while saving up for something else. unless the person wants to be free from debt.
3. & 4. really don't make sense because u can't really time the market. we got no crystal ball. warren buffet's famous saying is 'be greedy when people fear and fear when people are greedy'. it means to buy when the market drops and to sell when the market is hitting high. another fundamental is buy low sell high unless u want to buy high sell high. and another reminder is investment in shares and unit trust are one's spare money which the person doesn't need it urgently. since it's extra money, why sell? and which pain do u want to go through? paper pain or physical pain to see the loss?
6. makes sense
7. doesn't make sense. if u have only one car, would u sell? would u sell the roof above u? if yes, where r u going to stay?
8. makse sense since cash is king in a recession time.
9. i totally agree with this. if don't have money to go holiday then just don't. why want to have more debts? azizi ali, an author of how to be a millionaire, also stress on this point.
this email is not true. i'm a unit trust consultant for CIMB and my manager explained this is not sent by CIMB.
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