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We would like to wish all of our Clients and colleagues in the Far East a very prosperous and happy New Year!

 

Today is the first day of the lunar New Year.  To the Chinese, it is the start of a new year .  I am sure that we all look forward to a prosperous year of the Tiger, hopefully without sensationalist headlines of credit crunches, market meltdowns and all-pervading gloom and doom.

 

Read on to find out more about the Year of the Golden Tiger.

Whilst each Chinese zodiac sign has its virtues, there is much in the traits of the Tiger to admire and imitate if one wants to be a successful investor and enjoy good fortune in 2010. In Chinese astrology, the Tiger is said to being resilient, alert and farsighted. All good qualities that should see any investor through both good times and bad.

2009 was a very volatile year for global equity markets but it was also a year of recovery. Many people saw the value of their investment portfolios, superannuation funds and CPF investment portfolios rise like a phoenix from the ashes of the global financial crisis. For the astute investor this was expected; as Warren Buffet says: “Volatility is your friend.” The only investors who really suffered capital losses during the crisis, were those whose portfolios lacked diversity, were over leveraged, or those who moved to cash when the markets were at their worst. Those who panicked and sold good quality shares did so because they listened to all the market noise and believed the markets would continue to fall. These people would have been better served in taking heed of the ‘Prophet of Omaha’s’ sage advice to “be fearful when others are greedy and to be greedy only when others are fearful”.

It may seem counter-intuitive to hold on to your investments when markets are falling or to resist buying highly leveraged or structured products that you do not understand. However, having the discipline to commit to a long term strategy will lead to success in the future. If your goals, dreams and objectives have not changed, then why should your long term investment strategy change?

Unfortunately, Tiger people sometimes are unable make up their minds and this can lead to poor, hasty decisions or sound decisions arrived at too late. Sticking to a smart investment strategy requires more than just patience – it also requires objectivity. When markets are volatile and emotions are running high, the professional advice of your trusted financial planner will help everyone including Tigers with the required objectivity and discipline.

Of course sensible investment is only one component of a holistic financial plan. To be effective, your plan should also cover risk mitigating strategies such as health coverage, death plus total and permanent disablement insurance, as well as trauma and income protection insurance. A living and breathing financial plan will not be complete unless both tax planning and estate planning are also covered.

To ensure that every New Year is a happy one that leads to financial independence, talk to your trusted adviser and get your financial plan in place. Make sure you have a plan to ensure that all of life’s non- negotiable items, such as the family home, children’s educations and a comfortable retirement income, are all within reach.

All that is left to do is to put on something red to ward off the evil spirits, and enjoy the celebrations knowing your financial plan is a strong as courageous and powerful as a Tiger.