Ø Fluctuations in equity markets are part & parcel of this business. When we joined this industry, we knew that there will be market volatilities. We did not expect that the markets will only keep going up. A product that promises fixed returns eg. FD does not need consultants. Market fluctuations are the reason why we have a career, so get used to it!
Ø People rush to petrol stations to fill up their tank when they know petrol price will increase the next day. Same practice with other items like rice. So, knowing that education costs & living costs will definitely go up especially with high inflation now, we should be “stocking” up on the funds needed to finance the education & lifestyle, right?
Ø “Sentiment is bad” vs “Confidence”: which are u feeling most or all of the time?
Ø If we are weak, outside factors will influence our inside feelings. But if we are strong, our inside feelings will influence the outside & we will be able to overcome our prospects’/investors’/ objections & hesitations. So look them in the eyes & say with confidence & conviction: INVEST NOW! (Pls see below her 8 Golden rules)
Ø Buy low, sell high. Buy high, sell higher!
In an investment that fluctuates, we must always buy low & sell high (not buy lowest & sell highest becoz no one knows when is the lowest & highest). & LOWS only occur in unstable markets NOT in stable markets! & the markets now are certainly UNSTABLE & therefore they are LOW, so we need to invest now! But what if they go lower? Invest more! Or, if they go lower, it means that they are high now. If we end up buying high, then we should sell higher! & we know that unit trusts will go up eventually becoz they are diversified, unlike individual stocks. The markets will definitely go up & based on past history, market peaks get higher & higher & market bottoms also get higher & higher.
Ø If u buy an investment at RM1 & it drops to 50sen, your “loss” is 50%.
If u invest again at 50sen (assuming same amount invested), u will bring down your average cost to 75sen & when the price goes up to RM1, u will have made a profit. But if u do not invest more at 50sen, when the price goes up to RM1, u will not have made any profit, not to mention the opportunity cost of holding that investment in the meantime.
Ø If u buy an investment at RM1 & it drops to 50sen, your “loss” is 50%.
If u buy an investment at 50sen & it goes up to RM1, your gain is 100%!!!
Ø When the markets were good (last year), there were UTC’s who did very well.
The markets are not so good this year but there are still UTC’s doing very well.
Are u one of those UTC’s or are u like the market?
Ø Many of us still remember the last bottom of the KLCI in 1998 at 262pts. Many of us missed investing at that time due to negative “sentiments”. Are we going to miss 2008 & look back one day & regret it like we regret not investing more in 1998?
8 Golden Rules of Investing (for investor):
- Do not borrow to invest.
- Do not invest all your money.
- Do not invest money u need soon.
- Do not get emotional & panic.
- Keep investing & stay invested.
- Diversify.
- Do take professional advice.
- Do give your investments time to grow.
Are u in this business for the long haul? (for UTC):
- Keep growing.
- Look after your clients' interests.
- Stay out of trouble on your way up.
- Continue learning throughout.
- Focus on your career.
- Manage your money.
- Accommodate changes.
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