Monday, 9 March 2020


"Broken house meets torrential rain, broken boat meets strong wind"

Covid19 spread, supply chain worries and politics drama are not enough, here comes the sensational crude oil price collapse in a day.

Brent oil price plunged 30% from $45 to $31 in a single day today, thanks to the price war between Saudi & Russia. 

This is the worst intraday drop since Gulf War in 1991, and it might drop further according to some "experts".

So, are we witnessing the once-every-10-years major financial recession now, despite a slight delay?

Almost all stocks traded in Malaysia fell sharply. Without a doubt oil & gas related stocks suffered the most with a drop of 20-40% in a day.

Hibiscus which is directly affected by the oil price fell 42% to 41sen. This looks like an attractive price but I think I better wait for the dust to settle first before deciding to average down.

Oil price might continue to drop but should not be depressed for too long.

My portfolio has shrunk in value significantly. Even though I sensed that market will not be good in near term, I still decided to keep those stocks and only have myself to blame.

If not because of those stocks sold last month, my loss will be much more year-to-date.

Investors with lots of cash must be very happy as this is a golden opportunity to buy shares at great discount.

Currently my cash:stock ratio is about equal, but I need to be more cautious before buying any shares.

Anyway, if you're suffering temporary loss, it's quite "normal" and don't be too depressed. History has repeatedly shown that after a bear market, bull market will follow.

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