When it comes to his investments Sandeep Kore, 40, believes in following his gut feeling.
Intuition can prove theories wrong
When it comes to his investments Sandeep Kore, 40, believes in following his gut feeling. The Indian national, who has lived in the UAE all his life, says he seeks the advice of financial advisers, but ultimately does what he thinks is best. So far, his independent thinking has served him well: last year, he was one of few investors who escaped major losses.
Several months before the financial crisis hit, Mr Kore decided to cash in his investments. "I took advantage of the downturn. I had cashed in my investments at the end of 2007, and the beginning of 2008. Luckily I was sitting on cash when the real crunch came, and I was able to buy in at the bottom, especially a lot of stocks," he says. "In 2009, when the markets started to pick up in the third quarter, I benefited."
Mr Kore, who owns Al Saffar Interiors, an interior design firm, says this year he will follow a similar strategy. He says he is expecting another market correction and therefore planning to slowly liquidate his portfolio consisting of US stocks, mutual funds, bonds and sovereign bonds, as well as some Indian and UAE equities. "I'm pretty confident in 2010 there will be another downturn in the middle of the year, so it's better to be sitting on cash and wait for another opportunity to invest," he says. "There has been a slight recovery, but I don't believe it. It's just number-juggling at the moment."
Mr Kore believes the downturn was a good thing for Dubai. "Dubai needed a cleaning up of sorts. It was speculators that were driving the market to unrealistic levels, and it sort of self-corrected itself," he says. "People like me, who have been here for a very long time, feel it is back to where it should have been." * Sanam Islam