Title sounds familiar? It gets attention ya. This is how people / analyst / writes gets people attention. More attention = more traffic = more $$.

Last friday, markets closed wiping most gains for the year. As the markets open today, more red. You see news people losing their life savings. This is the absolute reason, EVERYBODY must be financially educated. You use $$ everyday yet most people are not financially educated.

While the market start to plunge, my heart starts to beat faster. The blood in my veins flow faster. Feeling excited, buying into value companies at a great discount. Slowly deploying my funds step by step as the market dives. Nobody will ever know when is the bottom, however it's still better then buying when everybody is buying.

Do look at the SPY ETF. I have deployed some funds there.  I have also initiated a little position on diagonal calls on INTC, WMT and SCTY.

Have a great week ahead!

Reply by Ser Jing on a question on possibility of a global financial crises as market look pretty bleak yesterday ( 12 Aug 2015) in my group chat..

Truth is, I don't spend too much time thinking about such issues.

That's because 1) I don't have any special insights regarding such matters; 2) Hardly anyone can get it right; and 3) Getting a macro call right need not mean you can invest correctly.

So I just focus on evaluating businesses, and making sure I stick to simple ones I can understand. A lot of value investors got killed with opaque banks during the last big financial crises because it was too hard to understand what the banks are doing. Conversely, it's a lot easier to see what can trouble say, a Starbucks (weak consumer spending, high coffee prices).

One barometer I like to use as a pulse for the US's economic health is Berkshire Hathaway. Buffett's company owns the second largest railroad and one of the US's largest utilities. In Q2 2015, Berkshire's non-insurance businesses (the rail roads, utilities, and other industrial companies), saw operating earnings grow 8% year-on-year. That's not too bad.

There are always things to worry about. But it's good to classify them as things u can know and control, and things u can't know and can't control. A lot of macro worries belong to the latter; let them be.

As for slow growth. It's good to look back to 1992. The US had an awesome time in the 1990s leading up to the dotcom bubble. But not many realise 1992 was horrible. There was a recession, unemployment was high, growth was slow, and even Ray Dalio was bearish on stocks.

But then the internet came and changed things dramatically. Have some faith in human ingenuity. Betting on the stock market is a long-term bet that we humans are always striving to improve our lives in aggregate :)

Just a month ago on my blog ( 18 July) I mentioned about buying PCP? Guess what, if you had bought call options, in just 1 month you would have tripled your $$$!

Berkshire Hathaway Inc. is nearing a deal to buy Precision Castparts Corp., according to people familiar with the matter, in what could be the conglomerate’s largest takeover ever. Given typical premiums, the price tag for the industrial company, which had a market value of $26.7 billion as of Friday’s close, could exceed $30 billion. At that size, the deal would rank as Berkshire’s largest ever and represent the latest mega merger in a robust year for deal making.

Take this chance to close your positions as I believe it's fair value already.

3 hrs on stage, teaching how to protect your capital, in case the fundamentals of the company changes.
thanks to Sean for his amazing faith in me.