Read? Wealth Formula : Balancing Act!!! (2)
STI is crashing!!!
How can we still stay calm?
Learn from ancient wisdom:
If you have a worry problem, do these three things:
1. Ask yourself: “What is the worst that can possibly happen?” 2. Prepare to accept it if you have to. 3. Then calmly proceed to improve on the worst.”
(Carnegie 49)
Fully understand wealth formula!
Wealth = Asset Value + Cash Flow
We have no control over the latest market pricing of our asset value; but we can still exercise some control over our assets allocation to ride and survive within our emotional tolerance level for future market volatility.
Market volatility is part of the Game. We cannot escape from it if we are in the Game; but now with the visibility of rising interests rate from the recent historical low; higher is the way to go. Now, we have some control on how to slowly get out of the Game as higher cash flow from interests will be expected.
Stay Calm!
Falling asset value = falling cash flow?
Not really!
Falling asset value in the volatile market may have little or on effect on our cash flow when we have fairly large capital to ride the market volatility.
Asset value may be falling but rising cash flow from dividends and interests are expected over the next two years if we manage our assets allocation well!
See for yourself on these three images on why he can choose to stay calm!
There is reason in it!
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