The short answer is no. Conventionally, many investors like to wait till the coast is clear before they start investing. They tend to focus on the risk of losing money in challenging and uncertain environments.
However, if we truly grasp the concept of risk management, we will realise that the best time to accumulate assets in a prudent manner is when all the risks are already evident and priced into the financial markets. Oftentimes, we might be nearer to the bottom of the cycle than the top, with risk-to-reward tilting in favour for us.
Such “crisis” presents opportunities for investors to acquire quality assets at discounted prices. While we certainly can’t predict how long it takes for the recovery of the market, the ability to exercise discipline and patience to act on market opportunities will pave the way towards long-term financial success.
Investing is about preparing for the financial future and strategically position our portfolios for it. It’s less about predicting the exact timing of rate cuts and more about whether your portfolio is well-positioned to benefit financially when they do occur.
Additionally, it’s important to consider whether the downside risks are likely to be contained if the rate cuts are delayed for any reason. These are the key questions investors should be contemplating.
If you would like to capitalize on the undervalued S-REITs market and learn how you can build up your own REITs portfolio, join us in the upcoming session of Invest To Build Passive Income With Singapore REITs workshop.
In this workshop, we will guide you on applying a framework to cherry pick S-REITs to invest in and share how you can buy your selected S-REITs at reasonable prices. The workshop includes hands-on activities to help you immediately put your learning into practice. You may find out more details on the workshop and save your seat here.
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