Lie back and take liquidity

"We need to save more to handle the global financial crisis," he said.

Don't be greedy, he added. That means avoiding highrisk, highreturn investments. For managers, keeping spending from exceeding revenue is the key.

As the economy is still slowing down this year, investors who don't need to use much cash during the next two to three years are suggested to invest in stocks. Buying good fundamental stocks with regular return is a wise practice.

"Due to the situation in 2009, people are talking about return of capital rather than return on capital. They fear risk. This is quite a bitter joke reflecting their lack of confidence in the economy and investment," Vana said.

Jotika Savanananda, chief executive of TMB Asset Management, says: "If you have cash, just keep it with you. You have to think first how much liquidity you need and whether you will be unemployed. That settled, you look for investment opportunity."

Staff at companies that are likely to lay off employees should have enough cash for at least 28 months.

Asked what to invest in, Jotika suggests highliquidity assets with low risk, including government bonds, or bonds with threemonth, sixmonth, or 12month maturity.

However, in the first half of this year she recommends that investors avoid stocks, as foreign investors have not stopped selling Thai equities. The Thai stock market is likely to be bearish until the end of the first half of this year before beginning a gradual recovery in the second half, she predicts.

The key factors are the global eco¬nomic environment along with the local political turmoil.

Jotika added that property funds were another good investment tool. However, these funds are not suitable for those who need liquidity for trading. It is fit for those who are sure that they can invest long term. The return from property funds is normally better than from bonds in the long term.

However, investors should select property funds with relative high liquidi¬ty, which usually means large funds.

Another alternative investment is gold. Gold prices are likely to surge amid the current volatility in the stock and debt markets. However, gold prices are likely to be very volatile in the short term. Over the past year, gold prices have moved over Bt1,000 within one week.