Cedric Ho

When markets fall, do you focus on predicting what 𝑚𝑖𝑔ℎ𝑡 happen next?

Or what you can actually do?

After 20+ years in the market, I’ve learned the latter is far more important.

My playbook during a downturn is simple:

1.I look for businesses where fundamentals are still intact
2.If prices of these companies have been beaten down indiscriminately,
I start allocating.
3.I reallocate when needed.
From weaker ideas… into stronger ones that are now cheaper.
4.And most importantly, I zoom out.

Because what matters isn’t where prices go next week…
but where they are likely to be in the next 3 years.

It’s simple.

But in moments like this, simple doesn’t feel easy.

That’s why having a plan matters.

—
Want to explore how we help investors compound wealth through uncertainty? Let us do the work while you live your life. DM me to find out more.
- 2025: 42% return
- 2024: 37% return
(SRS money accepted)

Sign up for my newsletter and more in my profile Cedric Ho

I’ve been in the markets for over 20 years. This is how I’m navigating the current downturn.

The past couple of months have been volatile.

It started with concerns around AI disrupting software companies.
Then came geopolitical tensions in the Middle East.

During this period, I had quite a few people reach out to me.

“Things could get worse — is it time to raise cash?”
“How are you positioning for a potential recession?”

All fair questions.

But it got me thinking.

When markets turn volatile, it’s natural to extrapolate.
To assume that what’s happening now will continue — or even worsen.

And from there, to feel like we need to do something to avoid the pain.

The challenge is:
𝐍𝐨 𝐨𝐧𝐞 𝐫𝐞𝐚𝐥𝐥𝐲 𝐤𝐧𝐨𝐰𝐬 𝐰𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧𝐬 𝐧𝐞𝐱𝐭.

In fact, more often than not, the moments that feel the worst
are closer to turning points than we realise.

So if we can’t predict what’s coming… does that mean we do nothing?

Not at all.
It just means we need a different approach.

This is how I think about it:
Identify which businesses are least affected fundamentally
Allocate more capital to these positions when they are indiscriminately sold off
We act when prices have fallen enough that we have high conviction they will be meaningfully higher over the next few years.

The plan is simple.
But it’s not easy to implement.

Because in moments like this, most people are focused on their pain and how to avoid further losses.

Having the discipline to act when it feels the hardest, is often the difference between
long-term wealth creation
and years of trying to time the market...only to go nowhere.

—
Want to explore how we help investors compound wealth through bear markets? Let us do the work while you live your life. DM me to find out more.
- 2025: 42% return
- 2024: 37% return
(SRS money accepted)

More details about my investing in my profile Cedric Ho