Dear readers, currently the stock markets are indeed volatile; equities have in general trended down.
Also, in parallel, cost of living, inflation are heading north. Interest rates e.g. those from fixed deposits have widely climbed upward, benefiting savers. However, mortgage owners may be finding it more challenging to finance their mortgage loans
Against the aforementioned backdrop, should investors:
- Put their monies in the stock markets, taking advantage of the recent pull backs in the stocks markets?;
- Put their monies in fixed deposits, short-term savings plans which now offer high interest rates; or
- Do nothing now?
Given the state of the economy now, I would really believe there is reason for a global stocks markets meltdown to hit the global stocks markets soon. And when the meltdown happens, everything including stocks and bonds will head south.
I suggest investors to hold on to and continuing building up your Cash.
Save more to buffer for your needs in these uncertain times.
Spend less on your “wants”
Prepare for an investment cash war chest to invest in stocks when many investors are fleeing away from the stocks markets and profit from it.
And consider short term fixed deposits to let your monies build some returns in the interim.
To add on, I have been liquidating most of my portfolio over the past two years and free up liquidity. I am glad that I have done so as many of these stocks liquidated have even gone lower now.
The upcoming stocks markets corrections will be in my views and what some have said “unprecedented”.
Because it may be one where fiscal stimulus (aka printing monies) may not be enough and where it may take a long time to recover from.
Let us get ready for a stocks markets corrections next!
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