Stock Market is like a Yo-Yo

Sigh! I thought it was a good time to go into the stock market. I went in and the market is now going lower. It is impossible to invest in anything. Real estate is going down, shares are down, interest is so low that investing in bonds is risky. What is there to do? Warren Buffett says he must keep a good cushion of cash. Maybe I should realise some of my losses and retain cash instead. What will happen if the banks go down? The cash will be gone too. Deposits in Singapore banks are now guaranteed by the Government. It should be ok. Today's paper says whoever still have a job will have a pay increase with the deflation. Based on the examples given, there are many big ticket items costing less. However, everyday food prices is still the same. Nobody is buying big ticket items as the consumer confidence is not there. So the price comparison is irrelevant. What is relevant is the price of rice, vegetables, meat and bowl of noodles or plate of chicken rice. I did not notice my cost reduce in my essential purchase. So deflation may not be real unless you sell your house. It is a great time for people with money to buy houses now.