Market: Where is it going again?

In my posting in March, I have already spoken about market volatility. This is quite common sense. There is so much complacency in the market and stock/property markets are practically going up day after day. When everybody is singing and enjoying the party, any issue (no matter how small it is) can trigger a negative chain of events. However, like what I have mentioned in March, this should not be taken as a start of another bear market. When market is up so fast and so high, corrections should be common.

Fundamentally, nothing has changed. Although there are lots of things to worry about (e.g. problem in Greece), we are still seeing good GDP numbers from a number of countries. The events that triggered today's market crash are actually not that bad for the market. For example, the measures implemented by China to cool its real estate sector will help to prevent itself from ending up like what we are seeing in US today. In fact, we should be happy that China is implementing these measures because it means that they are making an effort to ensure that its economic growth will be more sustainable. As for the volcanic ash saga, I just heard that most of the hotel room rates have shot up. So, there are always opportunities during crisis.

Anyway, apart from the above, I just like to stress the importance of risk management. Always invest what you can afford to lose - remember to control your risk exposure. It is your money, so take good care of it.

Disclaimer: The content in this blog contains purely my personal opinion and it is in no way a substitute for professional financial advice. You should seek advice from a professional financial advisor with any question regarding your financial matters.