A Shake of Confidence

The current market rout is just a shake of confidence

Why do people buy and why do people sell?

You buy when you feel good and secure about your future, sentiments are generally very positive and you spend. Some may even get irrational and find themselves over paying. That’s how rising prices come about.

You do panic selling when you are desperate and fearful. When the fear overwhelms, you sell into depressed prices.

When sentiments and confidence are running low, your psychology runs wild and your expectations become even lower; you accept ridiculous price offers.

The market is always playing with our internal psychology and manipulating our external perception. The Doomsayers or some legendary investor will always have a crystal ball full of predictions of impending calamity.

Singapore Banking Crisis

If you just look at the fundamentals or sentiments alone, Equity markets, commodity markets and real estate markets are all extremely bearish including our neighbourhood fish markets.

And this can only confirm that most of the juice has already been squeezed out.

So when is the best time to buy or sell? There is never really a best time or worst time.

But generally there are 2 principles to follow –

  • Sell when greed is sky high
  • Buy when there is blood on the streets

History has shown us over and over again that when everyone is swimming in the same direction, smart money always swim in the opposite direction.

However  you should only buy a property out of Love. Buy because you love him or her. Buying real estate property is a long term commitment, the only reason why you are committing to a long term relationship is simply… because you love your family.