I haven't bought anything. Maybe I missed the boat? Maybe not. Who knows.
Some people may also be in a similar situation as me.
And maybe you're feeling a bit disappointed with yourself, or annoyed at how things have turned out.
But disappointment and annoyance doesn't change anything.
Like what I always say... What's next? Move on.
What can you learn from it. What more can be done from here on?
Dwelling on the past doesn't change it.
Feeling upset, disappointed doesn't make things better.
So... What's Plan B? How do you make the best of the current situation.
Option 1
Maybe you think that markets will eventually reflect the economy. So you could continue to wait.
That IS a strategy. I mean, you probably did your analysis, you placed your bets. You believe that markets are overpriced and may someday drop to a level which you feel is worth buying...
Nothing wrong with this.
Option 2
Buy now? That's also ok.
Markets are still off their peak. If you're comparing against the peak, then you're still looking at prices which are 15-20% cheaper. Still acceptable. Eventually I suspect the prices will recover in the long run so... it's still not a shabby return.
Not what you wanted but no fish, prawn also ok.
Option 3
Buy later maybe you continue to wait and markets continue to run.
So you might end up buying at fair prices. Not good deals, but maybe things have recovered, so prices aren't cheap, but probably fairly valued, considering there's probably much less risk 6-12 months later.
Whichever option I choose.
I remind myself... Why am I investing?
I'm pretty financially stable, even without a boost in returns.
Of course it would be great to wait for a 40% drop in the markets (STI dropped by 38.8%), and buy and wait for maybe a 60% return a couple of years later.
So it's probably nice to cushion up my assets by another 60% by buying when the markets drop.
HOWEVER, I also remind myself. I'm not a portfolio manager who has to beat a benchmark.
I don't need to perform better than anyone else, or any real targets.
As long as I get a good enough returns to handle my lifestyle and financial security, that's good enough.
So maybe my friends were able to buy when the market dropped by 30% and now they are sitting on some nice profits.
And maybe I'm feeling a bit down cos I missed that opportunity.
But I have to tell myself. I placed my bets. They placed theirs.
IF the market continued to drop. I would have made better returns than them.
I remind myself. That for example... (Not my real AUM)
I could have $1 million and earn 60% so in a couple of years I may end up with $1.6 million...
OR...
I could have $1 million and I buy late so I may buy some income producing stocks at 5% yield and end up with $50k per year.
Both of these scenarios I would probably still be living the same lifestyle.
So what's the real impact? Nothing really.
Just don't feel so shiok, cos having that $1.6 million would be more fun.
But in reality. I doubt my overall lifestyle would increase by much.
Heck, I could even upgrade my lifestyle now, but yet I don't.
So... yea, now, I'm feeling a bit sian cos markets aren't moving how I expected it to be.
But that's how the game plays. I made an analysis and decided to stick to it. Maybe I'm right, maybe I'm wrong. Maybe I'm right but unlucky, maybe maybe... I wrote about that before here too.
What's Plan B?
Well it's up to you. But remember why you're investing. Most of the people reading this blog isn't investing to try to double up their money during a market crisis. Sure it's an opportunity. But most of us should be investing for the long term, the slow and steady game.
As long as returns are good enough then that's good enough.
Once again...
These thoughts are my own analysis and thoughts, please do not use it as an indication to buy or sell. Please do your own research before making any decisions.
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