Down
Market. It means that a place which is toward or relating to the cheaper or
less prestigious sector of the market. The down market can be targeted by the
business people to expand their business widely. That is the reason why down
market become the target place for the business people. However, there is a way
to invest in down market in Malaysia. Let us look into the points one by one so
that you can have a future plan in business.
The
first thing that you need to consider when you decide to do the investments is
looking at the value investing. Honestly, you can have the better value when
the items are at the depresses prices. You can find great assets with deep
discounts, and make your investment with minimum downside, but a lot of upside.
As Kc Lau, the founder of KCLAU.Com states that “You can buy shares of “good
businesses” on the stock market. There are other forms of ownership — but
generally, buying stock is the most straightforward” can be one of the
investment way in the down market.
The
next thing you need to consider is to hold on to the cash. YOU NEED TO CONSIDER
THE TIME TO HOLD ON TO YOUR CASH. Sometimes, people always say that making an
investment during this time is very risky. Yes, it is indeed risky, but if you
do your homework and select good stocks or properties, you will be rewarded
handsomely. Keep in your mind that you could park your hard cash temporarily in
a lower-return but safe and liquid investment like fixed deposits, before you
strike with your next investment. That is the way for you as the business
people to invest in the down market.
Asset
is one of the tips to do the investments in the down market. The assets such as
stocks, funds, bonds, properties and even small business will give you a right
and proper balance if the business people knows how to have right proportion of
asset. For example, you might not want
to plunk everything into the Malaysian stock market or worse, invest in one
single company. Perhaps diversify into growth companies like Vitrox or OCK, and
also high-income generating counters like retail.
Last
thing you need to know is that, in a down market or market where there’s a lot
of uncertainty, it’s about finding “safe haven” investments. That means
investing less in speculative investments, and more in “quality” investments.
For example, within stocks, it’s about choosing the blue chips over the small
OR mid-size companies. So, this is the way for you to do “smart” investments in
down market.
To
conclude, these are the tips that you can “apply” in doing the investments in
down market. Be smart to do it!
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