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Investment in Troubled Times

Monday, 20 October 2008 08:00 Ginny Lim
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For the past 2 months, we have seen the various countries' indexes dropped by more than 10 per cents in more than one instances. The financial market is now in a mess, with giant financial institutions in U.S. and Eupose being shutdown, acquired or nationalised.

In these troubled times, should we leave the money in banks, savings account, Fixed Deposit or take it as an opportunities? Warren Buffet, the great U.S. successful investor, had just recently revealed that he was going to pull out all his personal money from bonds to U.S. equities. He advised that we should be greedy when everybody is in fear, and be in fear when everybody is greedy.

So it  may be times to invest in those companies with sound financial background which have been beaten relentlessly by the recent development. See the sequence of events happended in September 08 and assess what kind of investor you are here.

 

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Newsflash

Bankruptcy May Now Be Prevented

With effect from 18th May 2009, if you are in debt of less than $100,000, bankruptcy may be avoided if Insolvency and Public Trustee’s Office (IPTO) approved your repayment plan over the next 3-5 years. Statistically, about 42% of the bankrupts declared each year owes less than $100,000. So with an average of 3,200 bankrupts per year, 1,300 of debtors will be considered for the new Debt Repayment Scheme (DRS) administered by IPTO.

This is good news for Singaporeans amid the current recession. DRS benefits both the debtors and creditors in its own ways. Debtors will be able to avoid the stigma of bankruptcy and continue his work without the disruption brought about by the bankruptcy act, as long as he is able to fulfil the repayment plan. Creditors will also get his debts repaid from the debtors, albeit over a longer period of time.

The debtors must cooperate with the Official Assignee (OA) of IPTO in the administration of the plan. The debtor can make his payment at any SingPost branch or SAM machine, which is being monitored by OA. Dishonesty, failure to cooperate with the OA or comply with the terms of the plan may result in the OA issuing a Certificate of Failure on the debtor in the DRS. Creditors may then proceed to initiate fresh bankruptcy proceedings against the debtor. OA will issue you the Letter of Completion if you complete all repayment in accordance of the approved DRS plan. And you are now out of debt without being made a bankrupt!