In response to the tumultuous conditions on Wall Street, The Straits Times of Singapore asked a number of financial experts about the risks for investors. Times reporter Gabriel Chen spoke to one of these experts, Marc Faber, and wrote:

Q: Should I leap into the plummeting market to grab a cheaper blue chip stock or two?

It depends on who you ask. For instance, if you’re a trader, you could buy at these levels and sell them at 10 per cent higher.

Dr Marc Faber, who told investors to bail out of US stocks before the 1987 so- called Black Monday crash, said that if investors are holding 100 per cent in cash, then they should be putting 10 per cent of that cash in equities now.

‘But if someone’s fully invested in equities, I would tell him to sell on the rally because he’s overly exposed and the economic downturn could be worse than expected,’ he said.

Source:

“Will my money be safe?”
Gabriel Chen
The Straits Times (Singapore), September 17, 2008

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