Crimson River

We are barely into the first week of 2016 and there are bloodshed on the streets. I can only described it as "血流成河". Logon to SGX and all you can see are red.

I don't care if you are holding blue chips, mid-caps, telcos, reits, pennies... etc... Even the so-called defensive ones aren't spared.

I just personally experienced the biggest single day decline in my portfolio since I started investing - almost $2000 loss in a single day. I know this is nothing compare to the 2008 Great Financial Crisis, but it's still shocking for a newbie investor.

"Be greedy when others are fearful" - It's much easier said then done. You can 纸上谈兵 all you want, but it isn't until you actually put in your hard-earned money do you feel the fear. For myself, I am disappointed, yet even more excited. The losses are great, but the potential returns are even greater.

Every generation of young people will experience a few financial crisis that can potentially shaped their financial future - if they recognize the opportunity in the crisis and have the emotional capacity to take action.

Look here - We have Singtel, DBS Bank, OCBC Bank, Capitaland Malls (e.g. Plaza Sing, Raffles City), Dairy Farm (e.g Guardian, Seven Eleven, Cold Storage), ST Engineering (essentially SAF), to named a few, going at 20%, 30%, even 50% discount! And we have people selling and selling when their profits (some) and earnings haven't change at all. All out of fear of "global economy".

The question is - do you dare to buy?!

When you buy and see your $5000 become $2500 - can you control your emotions and not sell in fear? More importantly, do you dare to double down and buy even more?

Ask yourself - Do you doubt any of their ability to survive/thrive? Do you think Singtel will still be around 10 years later? Can you imagine a Singapore with DBS/POSB? Do you think SAF can exist without ST Engineering? For me, I cannot forsee a Singapore without these companies, and I have no doubt in their ability to grow with Singapore.

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"The stock market is the only market in the world where things go on sale and all the customers rush out of the store".

Ridiculous but true. Alas, I have not mastered the courage to buy more in a sea of falling knives, but I definitely have no problem holding on.

I have saved up for years for this moment.

For this bear to hit.

I am not gonna back out in fear. What I need to do is to strategically deploy my limited ammo.