029. Today is the best time to invest

Guess what is the favorite question in a market outlook Q&A session? Or what is participant looking for when attending such event?

Normally the presenter will present a market outlook follow by the latest performance of their funds. In the long term chart, we will see how well the fund responds to a crisis or correction. That is almost a selling point stressed by that fund company.

So, when comes to Q&A time, the most favorite question would be something like "Should we wait until something happen because your fund can perform so well after that?" This is investors' "kiasu" mindset. We only want to buy at cheap price. Question is how cheap is cheap?

I still remember in the last Financial Crisis when our KLCI plunging from 1400 over points to 868 points in Aug 2008, I approached one client to top up his investment but he wants to wait because he expected the KLCI to fall even further. But KLCI said sorry to him and went flying after that. I approached him again but he thought the KLCI was too high already. So there is no ending to his reluctance to invest TODAY.

How high is high? How low is low? Or does it matter the most? OK, if a correction comes, do you see it a WAIT or a GO? Below is a list of major events of world equity market. It is safe to say we see major event happening almost every year or every alternate year. What does it tell you? It can happen anytime, you can't wait for a clear sky day to start invest.

Take example of the recent oil price plunge, I ask my client do they see it an opportunity or a crisis to doom? Most will defer their investment. But after all this over, they could be resenting not investing and they think they should the next time. I admit it is against our emotion to invest in testing time like that. I always remind myself I regretted not invest in 08/09 crisis, I should not repeat the same mistake.

Whether you like it or not, whether you are ready or not, time to retire is time to retire and time for your child to go to university is time to go to university. You can tell yourself you have to work during retirement days but are you willing to tell your child to defer his university because you are not prepared?

Investors can always start invest through regular saving plan and top up lump sum should some major event occur. By this way, you can avoid stress of investing and not investing. The fact is if you are not in the market, you do not know when is high and when is low. Just like I seldom go to pasar, so I do not know today's vegetable is selling cheaper or dearer but my wife does.

Another fact is if you are not in the market and you do not ride through small ripples, your heart won't be strong enough to ride through storms. We will not have the ability to because the news coverage could be so scary that you think more worse things are going to happen. You could think that's the end of the world. Your "genius" friends would laugh at you when your investment start to drop in value.

Then, the table reminds us of the returns after 1 years, 2 years and 3 years. They are much better than FD.

Today is the best time to invest. Make yourself to. Squeeze some money when you are still healthy and working. Do it for yourself and your beloved family. Future are for those well prepared. Don't tell your family you do not save. Tell them you have saved the best you can. I believe they will be proud of you.

Sit back and think! If today's newspaper is publishing negative news, it is time to buy. Do you read paper saying oil price is still unstable yet? Do you read Greece story? Remember what Warren Buffett said? "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful".

Talk to your consultant how you can achieve your financial goals through proper planning. God bless.