The market has corrected significantly. In Jan 15 blog http://www.wilfredling.com/content/view/110/43/ I mentioned about people who feared to invest because then the market was so high. In retrospect, those who had invested on 15 Jan would have already earn so much money. At this point of writing, the market is down sigificantly. By right those who feared of investing at the peak in Jan, should be glad that the market is down and hence prepared to invest - right? Wrong! They still feared to invest because of fear that the market will go down further. Thus, regardless whether the market is up or down, they will always fear to enter the market. In the meantime, their money continue to be in fixed deposits and saving account guaranteed to be eroded by the inflation monster.

There is one thing about the market that everyone must understand. Market goes in cycle. It will definitely come down and it will definitely go up. Historically the upside was higher then the downside. The problem is that the cycle is not even and easily identified. Thus attempting to time the market usually results in a very bad long term return. Thus, people should avoid timing the market. That day I spoke to a new client who was surprised of my investment technique. When investing lump sum, I do not straight away invest into the market at one goal. Instead, I employed a modified dollar cost averaging so that the lump sum is guaranteed not to be invested at the peak. Give your comments