Dear Fellow Automated Millionaires,

As everyone do know that we are going through a financial crisis… the question is “Is everyone aware that riches are made from the crisis?” Since November, I have been advocating to start a Unit Trust portfolio. Why? Because the World Most Famous Investor, Warren Buffett treats investment as a business. If you are a businessman and you want to replenish your goods. What kind of prices would you want to buy at? High or low? LOW! Exactly.

Mary Buffett, in her book The New Buffettology mentioned that it is pattern that when there is a bear market, the most optimist (remember the time when everyone wants calling for crude to hit US$200 per barrel) will become super negative (people who says this bear market will last for very very long) in an instant! Amazing!

Recently, Bloomberg.com came up with two very important articles (attached) to show us the sign to start a portfolio. We came from a long way with STI Index at the peak of 3,700 to now currently, 1600 and Crude Oil at the peak of US$147 per barrel to now US$44 per barrel. Since, it is still too risky to go into the market at lump sum (unless your risk appetite is huge), we strongly recommend starting a maximum of S$20K for lump sum and the rest is to go into the market through a Dollar Cost Averaging a.k.a. Buying Insurance on Investment to protect ourselves from price volatility.

Lastly, for those who are already our existing clients, we will shifting another 10% of your “protected” funds back to the market to take advantage of the low prices and Santa Rally now!(This will the last round of switching for the year) And for those who are already using Dollar Cost Averaging, congratulations for making that choice! With the recent rally, some of my client actually went back to the black J Well done for making the decision to switch then!

Happy Investing!