With values across all asset types having diminished significantly, it may be wise to review one’s portfolio of investments and assess how they can free up cash (by liquidating some assets) to scoop up some good bargains which may provide healthier returns once recovery takes place. But this needs to be done with caution because it is hard to judge how much further asset values will drop, be it equities, properties or bonds.
“Ultimately, the whole idea is to free up cash and deploy it more efficiently. With fixed deposit rates at such low levels, money not put to better use seems wasted,” says CTLA Financial Planners Sdn Bhd managing director Mike Lee.