December 1, 2008 Business Times
Student investors caught in the meltdown, too
Young traders staring at huge paper losses, but hanging on to holdings
(SINGAPORE) The financial meltdown has become a double whammy for some university students - not only has it shrouded job prospects, it has also left them staring at investment losses.
Investment clubs have mushroomed in tertiary institutions here in recent years, with an increasing number of students active in the stock market. And they have not been spared the market meltdown.
One of them, 23-year-old Jason Low from Nanyang Technological University (NTU), said that while the value of his stock portfolio has dropped over the last few months, he is not pushing the panic button just yet. 'Right now, I'm actively trying to buy into more value stocks, because prices have come down,' he said.
Some of his fellow investor friends, however, have not been as lucky. One of them, said Mr Low, has suffered paper losses of $3 million. 'Everyone has been affected - it's just a matter of the scale of our losses. It happens in this kind of market, but my advice is to hold on to what you have for now. It's definitely not the time to sell,' he said.
According to previous reports, some young traders handle up to $200,000, turning to their parents and relatives for financial backing.