Syailendra's Steps to Anticipate Corona Shock

March 03, 2020

Over the past week, headlines in our media have been quite worrying, especially when the IHSG plummeted drastically. Not only in Indonesia, stock markets around the world experienced the same thing, resulting in panic selling.

The IHSG's decline certainly affects the portfolio of all investors, including those at Syailendra. So, what is Syailendra's strategy in managing your investments? Listen to the CNBC interview with our CEO, Mr Fajar R Hidajat, which aired during the Power Lunch programme.

In general, Syailendra Capital has taken several anticipatory steps, namely:
1. Secured cash starting from January
2. Conducted strict selection of stocks to be purchased. These stocks are purchased with the following criteria:
Quality Earning Stock
Cheap Stock
Cyclical Stock

Cyclical Stock are stocks whose prices are influenced by macroeconomics, that is systematic changes in the overall economy. With this condition, cyclical stocks are expected to provide returns after the global situation subsides. It is hoped that the current market panic selling will end in the first quarter of 2020, so the market can rebound.

So, is it still safe to invest in Mutual Funds?
Of course it is safe because an investor has not suffered a loss unless you carry out a redemption. The value of your investment will grow again as the global situation improves. It was also mentioned in the video that at Syailendra there is no aggressive redemption occurring. Many investors remain calm and patiently await the market to rebound.

As of 3 March 2020, the IHSG has begun to climb. Don't miss out, this could be your opportunity to start investing before prices go up!