Moving into 2009

Hotels in Singapore are expected to suffer as travel slows and room rates weaken.

This year, average room rates increased by about 8 per cent, reaching S$240 a night. But since June, room occupancy rates dropped. Analysts say companies can be expected to pull back on travel spending which will amount to around a 10 percent drop.

As we move into 2009, these are some of the possible events that can happen. More corporate failures.. more delinquencies... maybe a credit crisis... these are all possibilities. In addition, recently announced around-the-globe Aggresive fiscal policies may not work immediately. Certainly, these are also opportunities. Certainly, there would be more investment activities in either properties or blue-chip stocks. If share prices decline, it might be a good idea to average downwards. No doubt equity valuations would be cheap.. but potential investors must be able to stomach high volatility and be prepared for a long term view of three or more years. Invest only those funds that you won't need any time soon. The consensus among fund management companies, according to a recent report, is that a modest economic recovery will begin to happen only in late 2009 or 2010 at best, of course.. also hoping that nothing "extra-ordinary" occurs. The stock market usually reacts six months ahead of the economy while the property market traditionally lags behind the stock market in both up and down cycles.

Meanwhile, be hopeful! Certainly, things will get better.