The first quarter of 2015 has been pretty eventful from a personal standpoint. I've managed to start this blog to document my financial journey, complete certain personal milestones and even achieve a raise at work.

From a financial and wealth management standpoint, it is my personal opinion that the markets are on a feverish high. With all the liquidity and cheap money (Quantitative Easing) being pumped into the US, European, Japanese and Chinese markets, it is no surprise that we see stock markets rally to their new highs. 

The STI had recently crossed the 3,500 points, in mid April. A high that was only achieved before the global financial crisis in mid 2007. From this fact, we can simply derive that most of the components of the STI have run up to the pre-crash highs. In other words, now may be the time to tread with caution, especially if you are considering entry into the markets.

To end the note, I would like to share one lesson i have learnt as a result of the crash in 2007. The lesson was to always ensure a margin of safety before buying a stock. Simply put, it means to buy a stock when it is worth more than its price on the market. 

A stock may be undervalued for a variety of reasons, sometimes they are simply over-looked by the markets due to cyclical business environments and economic downturns. At other times, it may be a result of circumstances (e.g: the short attacks on Olam).

Having a reasonable margin of safety protects you, the investor, from market downturns and poor investment decisions. This is a simple step to protecting your investments and i hope you will find it useful in your own personal financial decisions!

Dream Chaser