I redeemed all my equity-based unit trust funds and divested my KLSE portfolio on 27 July due to the escalating
subprime woes in the U.S. I had a bad feeling it will have a contagion effect on the broader global economy and the
equity markets in particular.

I hope I did the right thing. Will sit it out at the sidelines to see what happens in the coming months.

David83,
Yes, I believe it will be prudent of you to make the switch
from equities to bonds. REITs may not be spared too.
Don't procrastinate. Just do it fast. Better to be safe than
sorry later.

Good luck!

This has got to be the lamest excuse not to protect your investment
in equities in a bearish market sentiment. The switching fee, if any,
is miniscule in comparison to the capital loss your client will incur.

Geez, I can't believe this is coming from a UT agent. Maybe they
are taught how to sell only.

If your UT portfolio is X ringgit two weeks ago, it becomes 0.9X now if you suffered a 10% loss.
You must incur a 11.11% gain just to bring it back to X, and I can guarantee you it will not happen
in the next two weeks with this prevailing bearish sentiment. This is just for capital preservation,
without profits yet.

I suggest you switch to bond funds ASAP to stop the bleed in the coming days.

For me, I have cashed out all UTs and KLSE stocks two weeks ago, now waiting for the
right time to pick up some bargains in the coming months.

As investors, we must not only know what and when to buy, but equally important
is when to sell. I have a lot of friends who got caught because they dont know when
to sell. Most dont realize paper loss is actually real loss.

Good luck

Supposing your portfolio two weeks ago is RM30K. Now it is worth 10% less,
which is RM27K. Your reduced portfolio value of RM27K need to add RM3K to
bring it back to RM30K. 3K is 11.11% of 27K.

You definitely will get back your RM30K eventually because the equity markets
are always cyclical. The question is how long do you have to wait while you
stay vested. For me, it took 1 week for a market downturn to wipe out 50%
of my KLSE portfolio, and 7 years to bring it back to its original value. Never
again will I hold on to paper loss or gain from this experience. Cash out and
live to fight another day when conditions are decidedly in my favour.