Many Singapore investors would be happy to see the back of July as it capped an awful month for the stock market. A total of $37.4 billion was wiped out and the combined value declined sharply by 3.9 per cent. I also saw an article in a local finance blog where one reader wrote how depressed he was to see his hard earned money evaporated away because of the market correction.
To put things into perspective, I have always advocated readers to only invest in monies that you can really afford to lose. If you have only $30,000 hard cash, you don’t invest all of it in shares. That’s pretty stupid and risky. The worse case is concentrating all your investments on a couple of shares when you are just learning how to invest. Obviously, such an approach is akin to asking for trouble. A market rout would ......