Last Friday Japan Earthquake was an unexpected event, and this will definitely cause panic selling on the next trading day which is on Monday. Usually for an unexpected event like this our Bursa Malaysia will undergo a period of correction. I'll usually wait for three weeks before I'll go into the market for bargain hunting. Always remember, the stock market will undergo a cycle but on the long run, it will be on an uptrend. So my advice is stay calm, let the market fall for 2-3 weeks, before you go in again. Unless there is another unexpected event happen, things will be different. But for now, that should be my strategy!
Happy investing
Pauline Yong
2 comments:
Does natural disaster affects the mentality of the investor?
Yes definitely! The earthquake will cause a country's GDP to decline. GDP is a measurement for a country's wealth which also reflects the profitability of firms as well. Moreover Japan is world's third largest economy there is significant impact on the world. However, this is different from a financial crisis whereby during financial crisis, banks have credit crunch, things are worse. In this event, the Japanese government is going to pump in money into their economy, hence, they will overcome this disaster eventually. As for M'sia, the impact is minimum.
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