Saturday, November 8, 2008

Smart Investor

Since the beginning of financial crisis, most of us are losing our hard-earned wealth. No matter you are holding stocks, funds, or even MPF, they are souring and the situation will likely to continue until the end of 2009. Even if you only hold cash, your pension funds are not performing well so you are losing monies indirectly.

For those who still want to invest amid the financial crisis, I suggest that:

1. buy only stocks/funds you know well, do not believe any recommendations/tips from others such as TV, newspapers, friends, or someone standing next to you in bank, etc.;

2. make sure that you do your homework before purchasing, such as reading annual report, funds performance report. Believe in facts and figures only, not recommendations; and

3. try to evaluate whether ETF (Exchanged Traded Funds) is good for you. They are similar to funds but have the benefits of stocks, and their handing fees are much cheaper.

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