Start building your assets! (Kuala Lumpur)

Let me ask you a question. Do you think that every share of every company in every stock market is going to fall in value? If you did, as a fund manager, you would now be shorting. Shorting means you would sell shares now with a view to buying them back in a while for a lower price. Yet almost nobody is shorting at the moment.

Commodities are set to explode higher.

Make no mistake, this is still a bear market. However, most bear markets last just 30 months or less. Then bull markets begin. If you want the big gains of the start of a bull market, you have to be invested. The safest place to be invested is a mutual fund which spreads your money across the shares of many companies in many industries in a country, region or the entire globe. Commodity mutual funds also exist. Anyone with a bucket full of spare cash available today could do a lot worse than to invest it right now. You have to be on the pitch to score a goal.

For people with less available cash consider a regular savings contract from as little as $150 per month, and participate in tomorrow’s gains. The fact is that it is the average price you pay for your holdings that matters. By spreading your contributions over the years you gain the advantage of buying in bad times as well as good times, and the result is that you buy funds at an average price which is lower than the price when you eventually cash in. I presently hold one fund where the share price is currently $80, because it fell from its peak of $170 a year ago. But over the years the average price I paid was $64. I’m holding it, even though I’m in profit, because I expect it to recover to its previous highest price very quickly in the coming year or two. That’s when I’ll take the profits. Buy low and sell high is the way to success. Right now, there are amazing opportunities to buy low.

What can you do with $150 a month? I suppose you could hire a hotel room for a night, but your budget wouldn’t stretch to dinner for two as well. It might pay part of the interest on your credit card bill, or cover dinner for four at your favourite restaurant. But over time, that amount begins to create wealth. It’s $ Protected content ten years, plus investment gains. At 8% per year money doubles in nine years. I expect far higher returns than that in the coming bull market and you should too. Why not invest for the education of your children, or for a deposit for a property, or a dowry, or for your own retirement, or simply for a rainy day. Security comes to those who have assets in excess of liabilities. Now is a very good time to start to build those assets. / Protected content