Monday, August 18, 2008

How To Invest In An Inflationary Period Like Now

Same questions are asked again and again whenever I talk to people about investing. You might be asking the same question too."Is it a good time to invest during such inflationary period? In such bad economic times?"Well, investing is like buying groceries at the market. Think of investing as the act of buying investment products. When you are in the market to buy something, don't you always look for the best deal?
Don't you always eye for the product that offers the best value for your money?Don't you want to buy products that are of good quality yet at a low price? Don't you like to go to the Ikea sale when things are cheap and you get to take home those nice furniture?Now, have you got the point? You buy when the investment products are being offered at a low, cheap price. It's the same act as going shopping at the mall.Right now, the market is at a steal.
The KLCI is at 1,100 points down from the peak of 1,300. In another words, it is now cheap. And there is potential for the market to return to 1,300.Gold price is at US$817 now, down from the US$1,000 peak in February/March this year.Investment products are now at a steal. It's time to buy. If you don't buy now, when? When the KLCI reaches 1,300 again? When the gold price climbs to US$1,000 again?Invest for long term.
And remember, focus on the long term. Don't lose that focus. Remember that investment is for the long term. Don't get weak in the knees just because of some short term price swings. After these small waves of ups and downs, the market will ride high again. Market behaves in a cyclical way just like nature. After the night, there is the day.

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