Up In Smoke
The recent financial turmoil has wrecked many economies worldwide. Without a doubt, our sunny shores are also awash in the panic of recession. And with more financial institutions crumbling under the pressure, I do not believe the worst is over.
I empathize with the men-on-the-street, whom lost their hard earned savings in the wake of the Lehman Brothers crash. I too, suffered an agonizing 30% (and growing) loss of some savings resulting from the aftershock of a battered American economy.
My cash stocks are tied to the main players in the local market. However, that makes it a moderate to high risk fund to tap into because of an undiversified portfolio. I have faith that our economy will emerge stronger then ever. It better. And with the promise to guarentee our dollar deposits by the Prime Minister coupled with our 150billion dollar reserves, I hope I’ll be able to ride through this current predicament.
Investing requires a lot of careful study.
One mistake can cost your life savings. However, there are calculated risks involved in everything. For example, you may choose to just dump your savings in the bank. That bank may just collapse. Even if I were to hide my cash in a biscuit tin under my bed, it may get stolen or worse still, eaten by silverfish.
Do you remember the story in Bible about the master and his 3 servants? Each servant was given the same amount of money. The 1st servant squandered the money. The 2nd buried it, while the 3rd invested and made the money grow.
So you see, the key here is to invest wisely.
If you’re looking for short term gains, then note that the stakes are much higher and that it may not be a suitable playing field for all. If you have the guts and the brains, then it’s your call. And your money.
For me, investments are never a short term affair. Like plants, they need (a realistic) time to mature. I will be more cautious in the future and study extensively before I sign on the dotted line.
And perhaps this episode will bloom into a bountiful harvest? Well, I can dream can't I?
