Sunday, March 30, 2008

Investing at a low level

Hi Mr. Tan,
I read your comment about two weeks ago, when someone asked you if it is all safe to invest in the stockmarket. You said that for a long term investor, the market represents good value as it is 30% below its recent peak.

I decided to take the plunge and invest my cash at that level over a few days. My investments have shown an appreciation of over 5%. Thank you for your good advice.

Congratulations on making a good investment decision. The market is still quite uncertain and volatile, so you should be prepared in case there are some negative surprises over the next few weeks.

Do not be worried about the volatility, provided that you are well diversified. I hope that you have invested in a low cost, diversified fund, such as the STI ETF. If you are investing for the long term, you will ride over the current downturn.

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