Now's not the time to bury your head in the sand
What is one thing all good companies (and countries) do in times of crisis and uncertainty? It isn't to run away screeming, and it is also not to continue doing business in the same way as during the good times. It is first and foremost to survive the upheaval, as well as to reflect and regroup, while positioning for a return of the good times. And that's precisely why the Asia Trader and Investor Convention (ATIC) at the Suntec City Convention Centre this weekend is so crucial.
Now, I'm not going to quote that famous (but unfortunately, wrong and expertly debunked) line about finding crisis in opportunity. Fact is, there is opportunity emerging but it's probably unwise to rush out and think opportunity is everywhere.
But at the same time, to stop thinking about the market just because we've had a setback is to acknowledge you've fallen into the fear-and-greed trap which probably got you into a mess in the first place.
The best investment you could probably make right now is in knowledge. Acquire new perspectives and skills. It's precisely now – at a lull in the market – that you should smarten up about your trading and investing strategy. Reflect on what has worked in the past, why it may not work in the future, and what the new way forward is. Position yourself, as I've mentioned, to be able to benefit when the bull market inevitably returns.
The problem is, the next bull market will be different from the one we have just left. While I see a return to the good times, they will be good for slightly or maybe even significantly different reasons for why they were good during 2003-2007. Unless you acquire new skills, you may not be able to recognise the new opportunities when they arise.
So, whatever you do, even if you are not in the market for stocks don't leave the market for knowledge. Don't shut yourself from the market, just because you are currently not invested (or invested and suffering).
Mark Laudi, who will be at ATIC. Come and say hello.
To comment on this blog, go to the Investor Central blog.
Now, I'm not going to quote that famous (but unfortunately, wrong and expertly debunked) line about finding crisis in opportunity. Fact is, there is opportunity emerging but it's probably unwise to rush out and think opportunity is everywhere.
But at the same time, to stop thinking about the market just because we've had a setback is to acknowledge you've fallen into the fear-and-greed trap which probably got you into a mess in the first place.
The best investment you could probably make right now is in knowledge. Acquire new perspectives and skills. It's precisely now – at a lull in the market – that you should smarten up about your trading and investing strategy. Reflect on what has worked in the past, why it may not work in the future, and what the new way forward is. Position yourself, as I've mentioned, to be able to benefit when the bull market inevitably returns.
The problem is, the next bull market will be different from the one we have just left. While I see a return to the good times, they will be good for slightly or maybe even significantly different reasons for why they were good during 2003-2007. Unless you acquire new skills, you may not be able to recognise the new opportunities when they arise.
So, whatever you do, even if you are not in the market for stocks don't leave the market for knowledge. Don't shut yourself from the market, just because you are currently not invested (or invested and suffering).
Mark Laudi, who will be at ATIC. Come and say hello.
To comment on this blog, go to the Investor Central blog.
Labels: Asia Trader Investor Convention, ATIC, bear market, jihui, weiji
ATIC@Bangkok: A Real Eye-Opener
Attending the Asia Trader & Investor Convention (ATIC) in Bangkok over the weekend proved remarkable for two reasons. First, you learnt retail investors in Singapore face many of the same issues as those in Thailand. And second, if you think Singaporean retail investors are always the last to know where corporate governance (=can we trust 'em?) and disclosure is concerned, spare a thought for your counterparts in Thailand who are not just facing incredible uncertainty due to the way business is done in Thailand, but due to the way politics is done as well. In my view, Singaporean investors have valid grievances about a variety of issues, but they pale by comparison to those faced by Thai retail investors.
Thailand is often referred to as the land of smiles. Meeting retail investors at NextVIEW's ATIC event showed this is certainly true. Everyone was extremely courteous. But after my talk on the 5 Keys To Profitable Investing, which you can also watch in summarised form on our website, a number of members of the audience approached me bemoaning the lack of corporate governance. They made all manner of claims about insider trading, stockprice manipulation, company owners dumping unsuccessful companies onto retail investors by glossing them up in a prospectus and listing them on the market, and so on. None offered concrete proof, of course, but their concerns sounded very similar to the claims I often hear Singapore retail investors make.
Beyond that, politics seemingly plays a much bigger but less clear role in Thailand than in Singapore. While I don't profess to be an expert on the subject, my previous visits and interviews there when I was a presenter at CNBC revealed that behind all those smiles were hidden agendas, corruption and the same manoevering as you would expect anywhere else. Except worse. The political game is played very differently in Thailand. I would warmly recommend The Nation or The Bangkok Post newspapers for further reading on how the PPP - a party formed out of the ashes of Thaksin Shinawatra's Thai Rak Thai - has seemingly won government, much to the chagrin of the metropolitan-based Thais who voted Democrat, and the military which ousted Thai Rak Thai in a coup two Septembers ago. Long story short: the political agendas of companies are not obvious to the observer, and the national interest may not always be at the top of the list of priorities when executives receive a visit or phonecall from any of the political heavies.
At least in Singapore, the role government plays in the affairs of companies - if any at all - is fairly clear: furthering the national interest, even if it is at the expense of the community at large, or individual shareholders and customers (as the slogan goes, "Nation above community, community above self"). Retail investors may complain that it is not a level playing field. But at least we know what game is being played.
Mark Laudi
ArchivesThailand is often referred to as the land of smiles. Meeting retail investors at NextVIEW's ATIC event showed this is certainly true. Everyone was extremely courteous. But after my talk on the 5 Keys To Profitable Investing, which you can also watch in summarised form on our website, a number of members of the audience approached me bemoaning the lack of corporate governance. They made all manner of claims about insider trading, stockprice manipulation, company owners dumping unsuccessful companies onto retail investors by glossing them up in a prospectus and listing them on the market, and so on. None offered concrete proof, of course, but their concerns sounded very similar to the claims I often hear Singapore retail investors make.
Beyond that, politics seemingly plays a much bigger but less clear role in Thailand than in Singapore. While I don't profess to be an expert on the subject, my previous visits and interviews there when I was a presenter at CNBC revealed that behind all those smiles were hidden agendas, corruption and the same manoevering as you would expect anywhere else. Except worse. The political game is played very differently in Thailand. I would warmly recommend The Nation or The Bangkok Post newspapers for further reading on how the PPP - a party formed out of the ashes of Thaksin Shinawatra's Thai Rak Thai - has seemingly won government, much to the chagrin of the metropolitan-based Thais who voted Democrat, and the military which ousted Thai Rak Thai in a coup two Septembers ago. Long story short: the political agendas of companies are not obvious to the observer, and the national interest may not always be at the top of the list of priorities when executives receive a visit or phonecall from any of the political heavies.
At least in Singapore, the role government plays in the affairs of companies - if any at all - is fairly clear: furthering the national interest, even if it is at the expense of the community at large, or individual shareholders and customers (as the slogan goes, "Nation above community, community above self"). Retail investors may complain that it is not a level playing field. But at least we know what game is being played.
Mark Laudi
Labels: Asia Trader Investor Convention, ATIC, Bangkok, NextVIEW, Thailand
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