Bet big in times of crisis: GCP Global's Gabriel Yap

[cyclone]

Gabriel Yap : So yes, it's a 10-year anniversary (since the global financial crisis), and it sounds very sentimental, but I have to ask you to look at all the other indicators as well."

Bet big in times of crisis: GCP Global's Gabriel Yap

Monday, April 10, 2017 - 05:50
by CLAUDIA CHONG

Singapore

WHETHER you are actively trading or making long-term investments, bet big in times of crisis, said veteran investor Gabriel Yap. He was speaking at a seminar organised by ShareInvestor on Saturday.

In his keynote address, Mr Yap, the executive chairman of investment firm GCP Global, urged investors to reap the opportunities presented by subsequent corrections in the stock market after an event such as the Asian financial crisis of 1997.

One year after the crisis, "the market went up 252 per cent from the low", he pointed out. "And then there's the 95 per cent up from the global financial crisis."

As a result, distressed times will smash share prices to irrational values, but investors have to be rational enough to buy at these irrational prices, said Mr Yap.

More details in http://www.businesstimes.com.sg/companie...abriel-yap

[Jacmar]

who don't know buy low sell high. Easier said then done. To start you must be anticipating a crisis so that you have a lot of dry powder to put into action. who can time a crisis? Even if you can time the crisis n ready You may be frozen like a deer with an oncoming headlights(too scared when you see people jumping off buildings) OR you want to wait for even lower prices. I can say for sure if you are relatively new to investment you won't have the expertise or temperament to be able to pull off.

[opmi]

I wonder if he sold his Raffles Edu before GFC...read some news article that Raffles Edu was a multiple bagger for him..

From observation, you have to sell before the crisis so that you can have the bullets to buy during the crisis...

Also if you need a job to fund your mortgage and your living expenses, it is unlikely that you can exploit any crisis in a substantial way.

[Big Toe]

It is extremely difficult to pull it off during the height of a crisis.
Many people would be worried about job security and a host of other issues to be actively seeking investments during hard times. The heros who are actively seeking investments then may not have the liquidity to do so or have used them up while averaging down. While it is easy to identify high valuations, it is impossible to know when it is at its most depressed levels.

So after learning the hard way. It is good to to set aside a significant portion of your investment in cash & highly liquid assets that do not evaporate in times of crisis. It's not only how much you earn during the bull run but how much you have during the pro-longed bear.

[karlmarx]

The market has been very cheerful with rising prices, buy outs, and good daily volume since the start of 2017.

I think this will be a good year with more participants lured back into the market.

We could have a 15%-20% correction (due to whatever unexpected event) but with current valuations (not cheap but also not ridiculously priced) a 50% crash will require a most impactful event.

I think we have yet to witness the euphoria leading to market peaks.

[opmi]

It is extremely difficult to pull it off during the height of a crisis.
Many people would be worried about job security and a host of other issues to be actively seeking investments during hard times. The heros who are actively seeking investments then may not have the liquidity to do so or have used them up while averaging down. While it is easy to identify high valuations, it is impossible to know when it is at its most depressed levels.

So after learning the hard way. It is good to to set aside a significant portion of your investment in cash & highly liquid assets that do not evaporate in times of crisis. It's not only how much you earn during the bull run but how much you have during the pro-longed bear.

I dont know about you. But I was moving my FDs around banks during GFC. Pulling out money from Maybank/foreign banks and plonking all in DBS and in SGS T-bills.
During GFC, it was the return OF money rather than return ON money that matters. (FD wise)

GFC is the only period in my life I actually have FDs.

[opmi]

The market has been very cheerful with rising prices, buy outs, and good daily volume since the start of 2017.

I think this will be a good year with more participants lured back into the market.

We could have a 15%-20% correction (due to whatever unexpected event) but with current valuations (not cheap but also not ridiculously priced) a 50% crash will require a most impactful event.

I think we have yet to witness the euphoria leading to market peaks.

I think one hint of market peak is that when you yourself (and everyone else) feels like an investment god. Then better be very careful then.

[chialc88]

Definitely need to be more careful now compare to 6 months ago.

Definitely more *new* investors coming onboard.

Definitely more financial bloggers.

Definitely bull market.

Nobody is disputing.

Time to sell?

  Love Compassion

[funman168]

Too early to sell, market euphoria had not even started.

[Bibi]

Too early to sell, market euphoria had not even started.

I do agree for STI index euphoria has not started. But what do u think about Dow or S&P index? If dow drops 20% don't u think STI will be affected as well?