MyValueResearch

Is Market Crash a Crisis or an Opportunity to You?

Most financial planners and fund managers would advocate that “time in market is more important tham timing the market”. Most of them also advocate that investors should stay invested and invest for the long haul.

They also advised that investors should ignore the short term market gyrations and focus on the long run.

And if you give the same advice to the Rich about staying invested and ignoring the short term market gyrations, they would shake their heads, as they probably think that it shows that you do not know much about investing or making money through investing at all.

The thing that I observe that the Rich share in common is they have Opportunity Fund.

Opportunity fund is simply any spare Cash (We usually advice people to have anything between 20% to 30% of your wealth as this Fund) that you have set aside.Yes SIMPLE SET ASIDE ! !.. And the purpose and objective of having an Opportunity fund is basically to ensure that you are ready and can take advantage of investment Opportunities, anytime as and when they arises.

Because he had an opportunity fund, one of mentors was recently able to take advantage of the market carnage to buy IDFC shares at rs 46, in less than two weeks it rose to about 70, a 54 per cent gain, which was definitely not bad at all over such a short time.

Of course, the Wise Rich would never risk all their money at one go or in one single investment, they know how to spread their risks. Thus, even if they are wrong and the investments went wrong, they will not be devastated.

Have you heard of the saying that a crisis is an opportunity? Actually, the truth is a crisis is only an opportunity for those with Opportunity Fund, for people who do not have cash, a crisis is just a crisis.

Each crisis is actually a time whereby wealth re-distribution occurs on a massive scale. In a crisis, there would be people who were rich but over-extended themselves during good times and might end up having most of their wealth wiped out or even bankrupt.

On the other hand, for those people who are well positioned (have Opportunity Fund), a Market Crash actually represents a rare Opportunity for them to scoop up bargains, and some of these people can move from Middle Class to become Rich. And those who are Rich might become even Richer.

Thus, important question we need to ask ourselves is should a Crash happens, how have we positioned financially ourselves? Do we have Opportunity fund?

Your answer to this question will determine whether a Crash means a Crisis to you, or would it be an Opportunity for you?

Start implementing this Golden Secret Formula of Investing if you want to be rich !