Your personal experience during financial crisis?

[NehNehPork]

I'm foreseeing a financial crisis about to come up this year 2015/2016. I have already been slowly liquidating off most off my investments be it shares/securities/funds etc. However, I'm new to investing (About 2 years now) and I have yet to go through and experience a financial crisis before in person. I have read up on the previous crisis, 2011/07-08/1997/1987 etc but I have never been through it, therefore my knowledge is really limited to a certain extent.

With the freed up cash, I'm actually hoping to invest in 2 private properties in Singapore, one 2016, and another 2017 but my main question would be whether is it wise to do so, and what actually emerges during the times of a financial crisis? And where should my money really go during such times? Would like to hear your own experience during these crisis

 

[linxiaobei]

I have no experiences to experience an economical crisis.

But wouldn't during a economical crisis bring down most if not all different type of prices? If so, then there will also be flacutation of property prices too. Not to also say that properties are mainly illiquid assets, therefore you might need to hold it for quite a long while too maybe up to a few years.

As seen from AFC during 1997s and SPMC during 2008s, property prices went down quite significantly too. If you were to buy and financial crisis hit, wouldn't you be most probably losing money on your property?

If you think that there will be a crisis this year, why not place the cash into fixed deposits while waiting for the right time to cash out and start firing? Or even shifting your money to elsewhere where they have full coverage of the deposits in the banks and have slightly lower currency risk against sing dollar?

 

[lolita_5]

why not explain why u foresee a recession this year?

 

[Asphodeli]

Can you guys withstand a 40% drop in your portfolio, and hold them till after the recession is over? I've been through it. Luckily at that time I had a stable job, though lowly paid. Didn't have much expenses also - no girlfriend, no 3G plan for my phone and low insurance premiums. That's why people always emphasize to only put in what you can afford to lose in the market.

Sent from Sony D5833 using GAGT

 

[simon_84]

i also haven't been through one yet.
my strategy would be to liquidate half and stay partially vested.

 

[holysmokes]

My FA is not good enough to predict tops and bottoms accurately. But I can tell when we are knee deep in a financial crisis or recession. This isn't hard because govts (plural) will announce. It isn't the same as journalists and forumers posting dooms day stuff.

When such a situation happens, I start to buy assets aggressively. I did this for 2+ years from 2009 to 2011.

When the doom and gloom starts fading away, I only nibble on assets. I focus mostly on saving cash. This happened from 2011 to now.

I don't know how to time the 2 markets such that I can sell stocks just before a crash comes, then plonk it into property when it crashes after stocks crash. So I can only use my stock dividends and cash savings for property investment.

I'm foreseeing a financial crisis about to come up this year 2015/2016. I have already been slowly liquidating off most off my investments be it shares/securities/funds etc. However, I'm new to investing (About 2 years now) and I have yet to go through and experience a financial crisis before in person. I have read up on the previous crisis, 2011/07-08/1997/1987 etc but I have never been through it, therefore my knowledge is really limited to a certain extent.

With the freed up cash, I'm actually hoping to invest in 2 private properties in Singapore, one 2016, and another 2017 but my main question would be whether is it wise to do so, and what actually emerges during the times of a financial crisis? And where should my money really go during such times? Would like to hear your own experience during these crisis

 

[Sinkie]

ehh during a financial crisis, when u do contra, mostly is buy what lose what, then when u want to cut loss, the other seller dont wait for you one, is either u lose less or i lose more, you can do a trade, then go toilet come back and lose $1000 le.

Then last time cfd not that popular also, only can nude short nia but most of the downtrend was formed by gap down the next day rather than sell down during market hour de.. and during market hour, most of buy the buy up were mostly short covering nia lol then when u think got buyer le, u go try abit and still lose lol

i remembered last 2007 financial crisis, got the raining phenomenon, when it rained, market cui, so everytime when u see the sky dark dark, u really wan just to go back office and cut cut cut lol. then when it rain, u really felt the chill

 

[private_invest_sg]

Each time there is a financial crisis, I would have to start working...

 

[Asphodeli]

Each time there is a financial crisis, I would have to start working...

wah rao don't comprain rah. I ish habe $100 left to end of the month cause of the oil crash and eurozone crisis

 

[Perisher]

Each time there is a financial crisis, I would have to start working...

After the crisis, u huat big big?

 

[Sinkie]

After the crisis, u huat big big?

he mean he has to find job in macdonald or drive taxi during crisis leh

i know during 2007, market street foodcourt really no place to sit and jiak during lunch time one

 

[Perisher]

he mean he has to find job in macdonald or drive taxi during crisis leh

i know during 2007, market street foodcourt really no place to sit and jiak during lunch time one

I thought he mean he cannot take out his money from stock during crisis so work to tide over temporarily, wait for crisis over, then his stock boom, he can quit his job. Guess not then.

 

[Asphodeli]

he mean he has to find job in macdonald or drive taxi during crisis leh

i know during 2007, market street foodcourt really no place to sit and jiak during lunch time one

That was in 2007? Thought 2008/2009 was the worst?

 

[Sinkie]

That was in 2007? Thought 2008/2009 was the worst?

oh ya, 2008..

 

[private_invest_sg]

My business only picks up during crisis... now swatting flies...

 

[focus1974]

During the last crisis, i had my half of my networth in the stock market..
the crash came and I liquidate ALL when it hit 20% stop loss..

then 2009.. i gradually scaled into th emarket with half of my networth again (i usually maintain 50/50 bond/stock allocation)...
But because of the pyschological scar.. i am still only 30% in stocks and 20% cash, 50% bonds.

Good or not so good thing is.. i underinvest in properties... i bought only 2.

 

[felixleong]

saw STI fall from 3800 to 2700
bought STI ETF at 2.70 exact, as the market seems to have corrected a lot (close to 30%)
lehman brothers when down and STI ETF hit a low of $1.5x...(close to 40-50% paper loss)... at night cannot sleep
all around is gloom and doom, everyone was saying we were going back into the great depression...
and then came the V shape recovery and history it was...
the biggest lesson I learnt is that what becomes cheap can become much cheaper... you can never tell when is the bottom and most importantly.. must have holding power!

 

[felixleong]

During the last crisis, i had my half of my networth in the stock market..
the crash came and I liquidate ALL when it hit 20% stop loss..

then 2009.. i gradually scaled into th emarket with half of my networth again (i usually maintain 50/50 bond/stock allocation)...
But because of the pyschological scar.. i am still only 30% in stocks and 20% cash, 50% bonds.

Good or not so good thing is.. i underinvest in properties... i bought only 2.

wow u got 2 property liao ah, rich man wor
no need work liao, just shake leg collect rents happy liao

nice~!

 

[knightdreamer]

wow u got 2 property liao ah, rich man wor
no need work liao, just shake leg collect rents happy liao

nice~!

Must ask if fully paid... if not also scare no rent to collect and pay debt

 

[winorlose]

ehh during a financial crisis, when u do contra, mostly is buy what lose what, then when u want to cut loss, the other seller dont wait for you one, is either u lose less or i lose more, you can do a trade, then go toilet come back and lose $1000 le.

Then last time cfd not that popular also, only can nude short nia but most of the downtrend was formed by gap down the next day rather than sell down during market hour de.. and during market hour, most of buy the buy up were mostly short covering nia lol then when u think got buyer le, u go try abit and still lose lol

i remembered last 2007 financial crisis, got the raining phenomenon, when it rained, market cui, so everytime when u see the sky dark dark, u really wan just to go back office and cut cut cut lol. then when it rain, u really felt the chill

HAHAHAHA! Yea! Everytime rain, mkt lao sai!