Dear helpless investor,
I am writing to check in on you. It has been a roller coaster week. Are you still intact despite all the ups and downs?
You must have been through a lot. Suddenly, you woke up to a disastrous free fall in the stock market. The next day there was a historic rebound. Then the following day another market plunge wiped out the gains.
As retail investors, we are at the mercy of a self-serving tyrant. Being bombarded endlessly with new tariffs, reciprocal tariffs, additional tariffs and paused tariffs. The “Liberation Day” served to liberate unconscionable politicians hurling offensive remarks at each other in the most undiplomatic way.
Like it or not, big market uncertainties are thrown in our face. The world is immediately under the threat of a global recession. As Prime Minister Lawrence Wong said, Singapore may or may not enter a recession this year.
Helpless investors and helpless employees
Notwithstanding the sinking of stock prices, depreciation of currencies and heavy sell-off of all asset classes, did your portfolio survive the turmoil?
The tariff game has wiped out USD174 billion from the net worth of the world’s top ten billionaires. On average, the damage is USD17 billion per billionaire. Fortunately, as an ordinary investor, your loss should be negligible in comparison.
Like everybody else, I know your strong sense of helplessness is not limited to investment.
At work, the company raised a red flag. The senior management scrambled to roll out pre-emptive measures. As expected, your bosses pressed you to come up with battling strategies. And I can imagine your clients and suppliers chasing you for contingency plans.
They are all worried. But they don’t know what exactly they should worry about. Therefore, they have no idea what precisely they need to do to contain possible damage.
Everyone runs around like headless chickens. They are frustrated, vulnerable, frightened and helpless.
“The unbearable helplessness of being” suggests a profound feeling of powerlessness and a deep sense of being overwhelmed, often associated with existential dread or a sense of being trapped in a situation beyond one’s control. It describes the feeling of being unable to influence or change one’s circumstances, leaving the individual feeling utterly helpless and hopeless.”
– Google AI
The blind leading the blind
Every time there is uncertainty, we look for directions. When we are young, we look to our parents and teachers to tell us what we can do. Once we start working, we wait for our boss to tell us what to do. If there is a crisis, we depend on the government to give us instructions and handouts.
Now we feel helpless again, we look to some personal finance or Investment youtubers to tell us what is happening and what to expect next. Also, we desperately want to know what we should do now so we won’t regret later. Just like looking to property agents for advice. We are looking for a “sign” to buy (or sell) for fear of missing out.
Some are telling others to buy the dips before it’s too late. What if this is only the start of a long bear market? Are they telling people to jump into the fire right before a full-blown blast?
Do they know what they are saying? Are the blind leading the blind here?
“It may be ironic, but in investment, it is often easier for people to justify their loss than to miss an investment opportunity.
In fact, people feel more terrible missing the opportunity to make money, compared with the consequence of being stuck with a bad investment. When the market crashes, it is common to find others who end up with the same fate. And it is a relief to know that ‘we are all in the same boat’”
“If you are one of the clueless buyers looking for a sign to buy, make sure that you look up to the right party for directions to avoid losing money.”
– Vina Ip, Behind The Scenes of The Property Market
Sharing 4 lessons when you feel helpless
No matter how confused and helpless you are, please keep calm. Stay level-headed and you can avoid making mistakes during market uncertainties. Maintain a safe distance from possible risks and you can avoid making any loss later.
If you are still at a loss, allow me to share some lessons I learned from past turmoil.
Lesson #1: Never lose back to the house
Do you agree that the ability to make money and the ability to keep it are two different things? You can earn your pot of gold with luck. But you cannot leave it to chance to protect it.
After winning the jackpot, do you pocket your win and walk out of the casino? Or throw it all back on the table with the hope of winning more, and risk losing it all back to the house?
Similarly, after you make your money, do you re-invest everything? Do you put in more of your own money and risk losing it all? Or do you keep your money in a safe place, and only invest what you can afford to lose?
“The taste of success from beginner’s luck can be too overwhelming to keep you level-headed. First-time winning makes you believe that Lady Luck will smile on you again. You want to do it a second time so that you can win more. That is exactly why gamblers lose all their winnings of the day to the casino. Thieves often get caught because they use the same old tactic to steal again.”
– Vina Ip, Behind The Scenes of The Property Market
Lesson #2: Don’t go where it is crowded
Did you watch Japanese drama “Private Banker” on Netflix? Private banker Ano taught his disciple “Don’t go where it is crowded”.
“Crowded” is something red-hot in the market and everybody rushes to buy like bees to honey. What the media tell you prices keep going record high.
“People who invest in the hype are often adventurous risk-takers. They long for the thrill of winning in lotteries, casinos and high-risk-high-return investments. The more they want to make money, the higher risk they take, and the more money they lose at the end.”
– Vina Ip, Behind The Scenes of The Property Market
Do you know that few can make money in the stock market? Most people lose money in the long run. This is the same for properties. You see many boasting their “good buys” when the market is good. But who will lose money in a bull market?
When bitcoin prices and US market indices continued to spiral for the longest time, did you follow the herd for fear of missing out?
Berkshire Hathaway didn’t lose a single cent to bitcoin. In fact, Charlie Munger has been criticizing cryptocurrencies for years for its high volatility and the absence of regulatory frameworks. His called it “rat poison”, “disgusting”, “contrary to the interests of civilization” and “will go to zero”.
I never like crowded and noisy places. Rather, I prefer going to a quiet corner where there are few people. If it offers good value-for-money, I am happy to spend my money. Never mind no one goes there. With no demand, prices are low anyway. Even if I lose money, it won’t be much.
Lesson #3: Sell early. Let others make their money
In 2024, Berkshire Hathaway sold $134 billion stocks and amassed a record $334 billion cash. After Warren Buffett cashed out, stock prices continued to go through the roof. Many laughed at his missing out. Some tracked the huge profits he could have pocketed if he hadn’t sold early.
I like to sell early too. Always make sure your next buyer can make money (or at least it looks like he can). If he can’t, you probably sell too late.
“I believe that paper profit is not a profit. But paper loss is a real loss. To make real money in any investment, you have to move in early when things are cheap. Make your money, exit early and pass the risk to the excited latecomers who can’t wait to get in.”
– “Property investor scores a home run (the unpublished version)”, PropertySoul.com
When the value of your investment rises to a certain level, remember to sell and lock in the profit. Don’t wait till prices start tumbling and sell under fear. Or worse still, you are forced to sell when you need money.
It is difficult to know the peak right before prices start to correct. Because if you miss the time to sell, you need to wait for the next cycle which can be short or long. There is no point telling others later that it used to have higher value.
This applies to properties and all other assets.
It is an exception when you bought something very early when prices were dirt cheap. For instance, I am not selling the stocks I bought at the bottom of the market. The dividend can be good retirement income.
Lesson #4: No action is better than wrong action
In times like this, doing nothing is better than doing the wrong thing. Sometimes, don’t invest is the best investment strategy. Remember, no successful investor needs to invest fully all the time. Warren Buffett is sitting on a cash pile of $334 billion now. Do you see him rushing into the market to buy now?
Honestly, I am no savvy investor. That’s why it is a must to reflect constantly after taking reference from the experienced with a track record of success. Then exercise individual judgement to see where to improve.
An investor is a lonely hunter. Investment is like falling in love. Either you go for it or you don’t. It is not necessary to discuss, debate or seek others’ opinions. You just have to ask yourself whether this is what you really want.
“Not giving a f*ck does not mean being indifferent; it means being comfortable with being different.” – Mark Manson, The Subtle Art of Not Giving a F*ck
After all, the objective of investment is to make money. Your ability to do so determines whether you win or lose the game.
Investment is different from a love affair, marriage, or having children. Although you lose them at the end, you have fond memories, and you enjoy the process. On the contrary, investing is like gambling. No gambler will say, at the end of the day, though he lost his shirt he still enjoys the process.
It is fine to feel helpless. This too shall pass. Good or bad times, may you have the best of luck in your wealth journey. Talk to you again soon.
Best wishes,
Property Soul
My book Behind The Scenes of The Property Market is available for preview and order online.
Check out my new online courses How To Buy Good Quality Properties and Buy The Right Condos.
If you need advice on property matters or residential properties in Singapore, you can check out my one-to-one consultation service.
Thanks for sharing, enjoy reading your articles. Cos’ there’s so many ‘noise’ nowadays, whether it is about tariffs or ……’advice’ from finfluencers on investing then turning to some saga. Banks apps, multiple platforms ‘asking’ you to park your $ there……Walking on streets, PA standing around hold banners promoting properties, 5m away 4-5 company employees asking you to use your skills future credits in their training, IA in NTUCs promoting credit cards and insurance, then pumping petrol at petrol stations IAs standing inside stores selling insurance, no doubt all of us have our own interests and all are tough jobs in some ways. But yes, no action is better than wrong action. There’s nothing wrong with not investing if you do not want to.
Thank you for reading my posts. It’s not easy to stay calm with all the noises around. Hopefully we can remain sane if we are sure what we truly need.