A recent chat with two separate property agents showed that they were optimistic and confident that the government will do anything to support the economy. I hear words like this from them:
a) “How can the USA government default?”
b) “The low interest rate is a secure and stable environment.”
c) “The Singapore government will not allow interest rate to go up too much because the economy will dive.”
From the annual reports of listed companies, we often hear:
a) “The operating environment is volatile and the US and Europe crisis continues to linger”
b) “Profit margins will be squeezed further because of lower demand.”
My question is what if the management of listed companies is right?
We need to prepare our portfolio to be prepared for all situations. My current opinion is to follow the advice of the management of listed companies and be prepared for all types of situation.
Just when no one believes that it will happen, things often happen out of the blue.
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