Great morning to you!

If you’ve just visited my blog, this is a continuing segment where I’ll be sharing with my clients the facts and a rational approach to the current US financial crisis.

Here’s the answer to the next question.

Q: The value of my unit trust investments has fallen along with the market turmoil. What should I do now?

The US is the leading world economy in terms of market capitalization.  Any collapse in their financial institutions will inevitably have a triggering impact on the rest of the world, even though direct exposure may not be there.

The good news is your unit trust investment portfolio is well diversified into different regions and asset classes. We have selected your funds based on valuations and sound investment principles that are used by successful investors like Warren Buffet and Peter Lynch.

From the very beginning (3 to 4 years back), we have been bearish about the US economy. Therefore, your portfolio has no or very little exposure to the US.

The next question that we will be exploring is: Will my unit trusts holdings ‘disappear’ along with the collapse of the major US banks?

Filed under: US Financial Crisis