Tuesday, 13 August 2019

_*Equity, Crashes & Life*_

Money invested into equity markets / fixed income / currency / real estate / commodities etc.

A *biggest one in a century crash happens on a day*(capital markets).....

*DOES THAT EVENT IMPACT YOUR LIFE FOR THE NEXT 5 YEARS?*

*Have you thought about this?*

*Are you prepared for it?*

The largest falls in % terms in global equity markets which happened in *one trading day*

1989 - Colombo Stock Market for -61.7%

2019 - Argentina (S&P Merval Index) -48%

2002 - Argentina (S&P Merval Index) -45.2%

2002 - Kazakhstan Stock Index for -38.6%

2004 - Mongolia Stock Exchange for -35.4%

(Source - Bloomberg)

So..........

Should we stop investing into Equities & Capital Markets?

Should we stop investing into Fixed Income Markets?

Should we just put all our money into Govt Bonds and schemes?...... Btw... Governments can go bankrupt & default as well - *pls check on Wikipedia on the # of countries and the # of times these defaults have happened over the last century or more* (including USA, China, India, Spain, France, Sweden, Denmark, Austria, Germany, Portugal, UK, Argentina, Brazil, Canada, Chile, Colombia and many more)

Now.....

Should we stop investing 🤔

If so, where do we hold the money 🤔

Gold?
Cash?
Bitcoin?
Land?

Any ideas???

*No phase in life or investing lasts forever*

But, *good / bad / ugly events do happen repeatedly*

_*We'll have to go through these phases again and again over a life time*_

Is there any other way out?
I'm willing to learn, if there is so 🙂

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