By: Adrian Khiat Blood on the street / Maximum Pessimism??? There was blood everywhere round the world. The Financial markets are flushed with a sea of red. There is so much fear and uncertainty that the market becomes psychologically driven. There was also a lot of frustration and unhappiness on all the mis-sellings of certain Financial Products such as Pinnacle Notes, Lehman Minibonds, etc that made the banks CEOs rich. Baron Rothschild is credited with the expression "The time to buy is when there's blood in the streets." The late John Templeton was known for his philosophy of investing at "the point of maximum pessimism." And the famous money manager Peter Lynch has written that "In many ways, the key organ for investing is the stomach, not the brain." It is easy to say that when things are going well, but when we are in this environment full of fear and uncertainly and with the US Law makers just rejected their $700B bailout plan. its certainly very hard to convince anyone on the idea of accumulating funds now. My advice for my clients will be to stay invested if you are still in it. It is too difficult to try time economic and market cycles, and that it is much wiser to follow a disciplined investment process. Its a hurricane out there, if you jump now, you have a higher chance of getting drown. If you have spare cash, its a good time to accumulate in a gradual manner. We do not know if its the bottom but we believe that its somewhere near the low and the market will comes back alive when most of us are still pessimistic and hoping the market go down further. Read more...