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Pounce For The Upturn

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According to Choo Koon Lip, director of Forex Asia Academy, “Considering current analysis, it seems like the world economy may start to recover sometime next year, while full recovery may take two to three years.” As this crisis begins to abate, Choo suggests how one can prepare for the eventual recovery and emerge stronger.

Limit Spending, Buy Stocks
“Right now, prices of just about everything look like they’re on a fire sale,” says Choo. He advises consumers to hold off on non-essential purchases to free up cash for smart investments at rock-bottom prices. Singapore blue-chip stocks, such as the local stocks on the Straits Times Index, are deeply discounted, so this could be a great time to beef up an equities portfolio. Reducing non-essential spending can help you afford great prices on sensible assets.

Expand A Business
If you own a business, Choo advises that now might be a good time to expand if circumstances allow, since prices are low. And even if you don’t, it might be a good time  to consider starting one. Nearly everything is cheaper now, including office space and equipment. “It’s a really good time to take advantage of the downturn to expand, if abilities allow, when everything is cheaper now,” he says. Secure current low prices to achieve long-term expansion.

Invest in Property
“Properties in stable countries and economies tend to be a good bet,” Choo says. Property prices have plunged from their heights of just a few years ago. This might be a good time to pick up a property, whether it’s a first home or a securely financed investment property. Look into high-end properties – like that dream condominium – as well. Their prices have fallen by as much as 40 per cent, making many of them a potentially great investment.

Consider Alternative Investments
“I trade forex,” says Choo. “It gives constant cash flow.” Since forex can be traded in both directions, up or down, it’s less dependent on the current state of the market. A disciplined trader can make profit consistently in whatever state the market is in, although Choo offers one piece of essential advice: “Understand the  instrument you’re going to trade along with its risks before you trade.”
 

 

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