Dear readers, the US stocks markets closed significantly yesterday. To recap:
Dow Jones was down 3.12%
S&P 500 retreated by 3.56%
NASDAQ Composite went south by 4.99%
It was also one of the worst performances for Dow Jones since year 2020, from what I have read.
Also just days ago, US Federal Reserves increased the interest rate which was the largest hike in 22 years.
There may be some correlation with the US stocks markets performance to US Federal Reserves’ rate hike but the fact is the global stock markets are long due for market corrections already with many now commenting that the next global financial meltdown is on the horizon. Some investors continue to stay invested as they believe their investments can ride out the next global financial stocks meltdown.
But stock markets may remain depressed for more than what was historically experienced and those investments may well remain under cost for a long time.
Also, there is no such guarantee as a company stock with forever good fundamentals. Everything is about supply and demand and these can be eroded fairly quickly over time.
What investors should do now given the more and more volatile global economy and stock markets is to continue to Save, deploy your savings in short-term risk-free plans (like the Jun 22 Singapore Savings Bonds which offers 2.53% per annum over 10 years) and continue to build up a safety nest to ride out any volatilities in the stock markets.
This safety nest can also well be your investment warchest to bargain hunt stocks at the bottoms of the next stock market meltdown.
Also, against this environment of high cost and high inflation, reduce discretionary spendings. Live Simple, Live Healthy. Instead of going out shopping and spending lots of monies on discretionary items, choose to jog at park connectors or visit the nature areas of Singapore which are All for Free. Or go to the library to read some inspirational and useful books, for free too!
Live Simply, Healthily and Meaningfully while costs of living continue to go up and global financial markets continue to be more volatile and most important thing is to keep saving all these while.
And when the next global financial meltdown comes, when many investors are fleeing the stock markets or find all their capital locked up in stock portfolio, this is when you come into the stock markets, armed with your investment warchest and become a King in the stock markets. This is because Cash is King when the financial and stock markets all correct!
Have a Good weekends ahead! Do continue to Stay Safe, Stay Strong and Stay Healthy!
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