The current financial crisis reminds me of a saying. “One bird in hand is worth more than two birds in the bush”.

I had just graduated from college during the previous recession after the Dot Com crash in 2001. The economy in my country was just starting to pick up after the Asian Financial Crisis of 1997/1998. Therefore, the impact of the Dot Com crash did not hurt much because we were already wiped out in 1997.

Another reason why the Dot Com crash did not hurt the economy in Asia much was because there were not many Dot Com companies in Asia back then.

This time around, I could clearly see the impact of the financial meltdown. I could finally appreciate the meaning of “globalization”. The financial crisis on Wall Street has affected share markets around the world.

Overnight, Lehman Bros lost 80% of its value. AIG lost 40% over a weekend. These are difficult times for stock investors. Billions of wealth have been wiped out since the outbreak of the sub-prime mortgage crisis in August 2007. The worst hit are those whose retirement funds are tied to these stocks.

In these uncertain times, investors may wake up day after day to find that their personal wealth has decreased again and again. Now is truly the time to embrace “one bird in hand is worth more than two birds in the bush”. Cash is King.