Your investment portfolio has lost 10%.
You are worried that it may lose another 40%, but on the other hand, it may rebound back in a couple of weeks time. So should you cut loss on your investment or not?
The recent market concerns about the state of the China's Economy and Oil prices have caused some of the stock markets around the world lapsing into a Bear market since the high reached in May 2015. Many of the markets are located in the Asia Pacific including Singapore, Japan, China and Hong Kong. The definition of a Bear market is a market decline of more than 20%.
For many of my readers who are exposed to Asian equities, there has been many queries on whether they should cut loss on the current crash or not given that I have been quite pessimistic about the Asian economy for the past few years......