Saturday, October 04, 2008

When is the right time to invest?

I might not be an expert in the financial market, many of my insurance clients seek my financial advices from time to time. There is no secret formula to invest, especially in the capital market when everything is possible. A good time might be a bad time to invest, or a bad time could even be a better time. Most people opt to take the ride when the market is positive but when it is down, the fear is too great for normal people to place their cash. Personally I think the best time to invest is when everyone is selling. That will be the time when everything is cheap.

Maram is a lucky friend who had taken my advice to keep cash. Upon retiring, he was paid a handsome golden handshake quite lately. As usual most working class, often get excited when they hold a large sum of cash in saving. Their hand always get itchy and their mind wanting to buy almost everything they see. I hold Maram firmly, reminding him not to be fooled by his short excitement. He has been very patience so far, taking my advice to wait for the opportunity.

Quite recently the world economy took a down turn. At the same time, at our local scene we face some political outcry too. Meanwhile Maram send me a short text. He wrote, "Hi! Bob, everything ok? Looks like the earthquake has started? What are your learned view!" My reply was, "The earthquake is shaking but it hasn't exploded yet. It might take weeks or months before it erupts. So please be patience and await for its lava to spill. Ok?" I was given this compliment, "U really sound like an expert in archaeology! Will look out for the lava?? Sexy too!! Thanks." I am sure Maram will strike his financial jackpot.

Food for the thought - "We would never learn to be brave and patient, if there were only joy in the world" - Helen Kellar

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