In the last few weeks, my mailbox has been full of emails by people asking me questions like, ‘I have lost so much in my stocks, should I sell?’, ‘How much lower can the market go?’, ‘ is it safe to buy now?, ‘will the market ever recover?’,’ What are the best things to invest in when the market is down?’

To answer all these questions, I have decided to set myself a CRAZY CHALLENGE of writing a NEW BOOK in 30 DAYS. Usually it takes me 4-5 Months to write a book so this will be super stretch, given the fact that I am speaking every single day and traveling to two countries in a week. But, I believe that anything is possible when you are committed enough.

The book will be entitled ‘PROFIT FROM THE PANIC- ‘How to Protect Your Money and Profit from the Worst Financial Crisis Since the Great Depression!’

Remember that Warren Buffet, Peter Lynch and John Templeton all became billionaires in investing because they bought stocks at super low prices when NOBODY ELSE DARED TO BUY during the 1930s (great depression), 1973-74 (the oil shock crash), 1987 (Black Monday) and 2001-2003 (Dot Com Crash). Well, here is another opportunity of a lifetime… IF YOU KNOW WHAT TO DO

Understand that when the market recovers, NOT ALL stocks will recover. Some will DIE and never come back up. Those that do survive will go on to become more valuable than ever (since they have less competitors around). So how do I choose the right stocks? How do I invest and take advantage of the China Market that is DOWN 70%, the US Market DOWN 45% and the Singapore market DOWN 61%? I will reveal all this in PROFIT FROM THE PANIC

However, unlike all my other books, I am going to be printing VERY FEW COPIES of this book. Why? because the market won’t stay this low and attractive for very long. It is only valuable as long as the market does not recover fully yet. So, I am only going to release this book only when the OPPORTUNITY still exists to buy when the whole world is panicking. After taking 30 days to write, it will still take at least another 30 days for production and delivery to bookstores. let’s see what happens!

BY THE WAY!!!! My latest book, ‘Secrets of Building Multi-Million Dollar Business Has Just Hit All Singapore Bookstores!

he school holidays are coming up again and I am excited once again to be able to run the series of ‘ I Am Gifted, So Are You!’ Program for Primary & secondary school students in Singapore, Jakarta, Bangkok, China, Hong Kong Malaysia. Out of all the programs that I run, the children and teens program is still the one that is closest to my heart and the one that I am most passionate about.

The reason is because I was once labeled as a slow learner, unmotivated, lazy underachiever myself. I was expelled from St. Stephens Primary in primary 3 (for fighting) and rejected from 6 secondary schools after my PSLE. Those were times when everyone looked down on me and I had extremely low confidence and self esteem. I really felt hopeless and useless at that time when I had friends and cousins scoring straights ‘A’s in top schools while I was struggling to pass in a neighbourhood school. Who would have thought that I could become among the top students in NUS and 20 years later, be conferred the NSU Business School Eminent Alumni award for being the one of Singapore’s top business leaders.

I would never have turned my grades and my life around and be enjoying all the success that I have today if I did not have the right role models to help me change my limiting beliefs and giving me the right strategies to do well in my studies. To me, running my kids program is really not so much a business to me anymore, but really a mission. I feel that it is my mission to reach out to all those students out there would were told by parents and teachers that they are dumb, attention deficit, slow, hopeless and useless.

My mission is to tell them YOU ARE NOT YOUR PAST RESULTS. You have all the potential to achieve top grades and live the life you truly want. If I can do it, so can you! If I am gifted, so are you! I believe that every students need to be given the opportunity to realize and unleash the winner and genius within themselves.

What really keeps me going and doing what I do is the hundreds of emails I receive almost every week from students telling me how they have transformed their own lives and their own results. This post is dedicated to them and I will like to honour them by posting their achievements here. Let them be an inspiration to all the other students out there!

Dear friends,

My latest book, ‘Secrets of Building Multi-Million Dollar Businesses’ will hit all the bookshops in Singapore in 12 days. The interest in my latest book have been phenomenal. Already, more than 500+ books have been pre-ordered by past graduates of my program.

As Singapore officially enters a recession (Straits Times, Oct 10, 2008) and layoffs and pay cuts are expected to rise (see one of the many articles from Business Times about companies slashing jobs)…

… it becomes even more crucial for you to learn the strategies of how to build a profitable business. Here is why:

1) In my opinion, it is extremely risky to be an employee nowadays if you have no other source of additional income. When downturns come (and they HAVE ARRIVED again), your company will have to cut costs by reducing pay and laying off its employees. As an employee, you do not own your job or your income. It can be taken away from you at any time. To ensure your long term financial security, you have to learn the skills of how to become an entrepreneur just in case it becomes your turn to get the axe! (statistics show that when you have a 50% chance of being retrenched past the age of 45 because you become to expensive to keep. If your boss can find someone cheaper, younger and willing to work longer hours then you, they will not think twice to replace you).

2) It may sound crazy, but the best time to start a business is in a recession! In fact, I started Adam Khoo Learning Technologies group during the last major downturn in 2002. IN this book, I will show you how I turned an $8000 investment (not even my own money) into a $20 million a year business that operates in 6 countries.

During a downturn and a recession is when rental becomes really cheap, employees are much cheaper to hire and banks are much more willing to lend money at better interest rates! At the same time, as major competitors downsize and scale back on marketing, it will give YOU…the new business entrant the chance to grab market share! During bad times, consumers tend to be more discerning and tend to give newer businesses a chance as their costs are usually lower

3) Finally, if you want to ensure than you are able to not only keep your job during the recession (which could last the next 2 years) but to even have a chance to climb up the corporate ladder (as a director, senior VP or CEO), then you have to learn the skills and the mindset of a boss! In bad times, companies will get rid of those who cannot create value and retain those who can. To achieve this, you have to learn the skills and strategies of how to help YOUR COMPANY achieve higher sales and profits

In my latest book, you are going to learn the most effective strategies that CEOs and entrepreneurs use to build and manage highly profitable business in good times and in tough times. You will learn:

· Why 90% of Businesses Fail…and how the 10% Succeed
· The Mindset & Habits of Successful Entrepreneurs
· Develop the million-dollar idea that will blow away the competition
· A Step-by Step Guide on building a business system that works without you
· How to start a business with very little capital and turn in millions within 18 months
· Build a Powerful Brand & Establish Yourself As the Market Leader
· Powerful Marketing Strategies that Will Kill the Competition
· Build a championship team of employees and partners
· Master the Art of Cash Flow… How to Roll Millions with just a Few Thousand Dollars

Chapter 1: The Making of A Millionaire Entrepreneur
Chapter 2: The Success Factors of Millionaire Entrepreneurs
Chapter 3: The Million-Dollar Business Idea
Chapter 4: Building a Business that Works…Without You
Chapter 5: Multiplying Your Business Profits
Chapter 6: How to Generate Millions in Sales and Profits
Chapter 7: Building a Championship Team
Chapter 8: Mastering Your Money
Chapter 9: Growing Your Business Empire

To order your copy (you have only 12 days left before this offer expires) at a super discounted price of $23 (The retail price will be $31.90 at all major bookstores), call 62740105 during office hours (Singapore time: 9am- 6pm) or send an email to chris@akltg.com

P.S. Only Another 300 Books Will be Given Away At this Pre-launch Price and Only 2 Books Are Allowed to Be Purchased By Each Person

Dear Investors

What you are seeing now in the market is a PANIC!!!! People who have seen their stock value drop by 50% or more cannot take it and are just selling at whatever price they can.

Hedge funds, institutions and people who have borrowed heavily to buy stocks in the last few months, are not able to meet margin calls and are forced to sell. As individuals run to the banks and withdraw whatever money they have left, mutual funds are forced to sell their stock and raise cash to meet this withdrawls. So everyone is SELLING SELLING SELLING at whatever price they can get.

On the other hand, many people with cash are sitting on the sidelines not daring to buy anything for fear that it can go lower.So what happens when you have got millions of sellers and no buyers? Stock prices plunge like a stone! The Dow (8579 pts) is down almost 40% from its highs and the S&P 500 is down 42% to 909 points. This has happened in the last 12 months since the crisis erupted.

When fear and panic happens and people sell irrationally, fundamentals and intrinsic value are thrown out the window. This is exactly what we talked about during Wealth Academy. This is when good companies get dumped together with the bad. (metaphor: This is when people sell 20,000 square foot bungalows on Holland road for $1m). This happened in the 1920s, 1973, 1987, 2002 and now, it is happening again.

Even stocks that are NOT directly related to the financial crisis are being sold at ridiculous prices. Look at Health Care: UNH (intrinsic value (IV) $53) selling @$17.80 , WLP (IV: $95) selling @$36.50 Technology: AAPL (IV: $189) selling@$88.74 Agriculture: MOS (IV:$81)@$36.52 , POT (IV:$184) selling @$92.85, Consumer Staples: KFT (IV:$40) selling@$27.70.

We all know from history and common sense that the market will eventually recover and go to even higher highs. So, why do people still sell when the market is down? Well, because EMOTIONS always overcomes LOGIC in life, even in the markets.

People always fear that THIS IS THE END!!! It will NEVER COME BACK. Also, sometimes it is because people are forced to sell because they have borrowed money to invest or because they need to raise the cash to pay their expenses. This is why you should NEVER borrow to invest or invest with funds that you need for your daily expenses.

So, if you want to emerge a winner, then stay calm, keep your logic and hold and pick up SOUND COMPANIES which are NOT DIRECTLY AFFECTED BY THE CRISIS, have strong balance sheets (low debt, high cash), consistent earnings and a wide economic moat with a high future growth prospects ahead. Here is where you put all your learning s from Wealth Academy to the ultimate test.

If you can do this, you will be one of the very few (like me) who will PROFIT FROM THE PANIC. However, do BEAR in mind (no pun intended), that I personally don’t think this is the lowest point. There is still lots of possibility that the market will still GO LOWER. After breaking the 9000 support, the next support on the Dow is 7500. Meaning it can still go down another 17% from here. Plus, more banks are probably going to fail in the US and in the UK. The UK crisis has just begun and I see that taking a further toll on the market.

This is however, not going to stop me from accumulating strong stocks at discounted prices and accumulating more as it reaches the bottom in a few months. The most important thing is to focus on fundamentally strong stocks that got hit by the collateral damage and avoid the ones that really got hit i.e. Financials. The market will probably not rebound very fast immediately, it will take months or even years for it to climb back up so no rush.

For those of you who have attending my Wealth Academy Program, I will soon email a list of stocks that I am accumulating right now

It seems really difficult to be an investor these days…doesn’t it? Everything you could possibly invest in seems to be going down down down, from the US, UK, China and Singapore. From stocks to commodities.

The intuitive reaction is to get out of the stock market and get into cash. There is intense fear everywhere that this is financial Armageddon and that the stocks will never recover. Yesterday, CNBC’s Jim Cramer (the guy who predicted that Bear Sterns was FINE) threw in the towel and urged all his viewers to SELL SELL SELL, saying that the Dow Jones dropping another 20% to 7,700 is a possibility.

This fear of buying any stocks and the ’sell before I lose everything’ mentality is what is causing the huge drops in stock prices. The Dow Jones plunged to 9955 (as low as 9,600 intraday) and the S&P 500 down to 1,056.The indexes are down roughly 30% from their highs in Oct 2007. The markets have been on a downtrend for 12 months since the Financial crisis erupted.

Before you start panicking like the rest of the crowd and sell your stock positions, always remember that history always repeats itself. This same panic and fear that caused investors to sell at huge losses (and never daring to go back into the market again) is what happened during the last three crashes.

The Crash of 1973- 1974: Stocks crashed 45% over 24 months. It later rallied 300% over an 11 year bull run.

Black Monday (1987). Stocks crashed 38%. Within 2 months, it rallied 561% over a 12 year bull run.

The dot com bubble burst (2001-2003). Stocks crashed 36% over 24 months. It later rallied 86% over a 4 year bull run.

History shows that the harder they fall, the stronger the bull run that follows. Fibonacci expansion in technical analysis shows that the next XOP (extended objective point on the Dow over the next decade would be 18,000 points, The Dow is now at 9,900. That is a 100% return from where we are.

Invest Only With Money You Do Not Need

So, am I saying that you should take all your money and dump it in the stock market right now? NO! There is a high chance that the market could still go a lot lower before it gets better. Remember that we have been in a bear market for only 12 months. The last bear markets of 200-2003 and 1973-1974 lasted 24 months. We are down 30% from the highs. We could well go another 10-20%. Again, nobody can predict the market and I am not pretending to. Anything can happen and it is almost impossible to buy right at the bottom. For all I know, the market could recover and rally next month.

So, what does a smart investor (opposed to trader) do? The most important thing is to invest with money you do not need to use for the next 2-5 years!!!! The reason why people lose out the the stock market is because they are forced to sell at ridiculously low prices (like now) because they HAVE TO raise cash to pay for their house payments, car payments, children’s education. Never Ever Use Money Which You Will Need. And NEVER EVER EVER borrow money to INVEST.

Invest In Great Companies With Solid Fundamentals

Remember that crashes are where FORTUNES ARE MADE. It is YOU, the well educated investor from Wealth Academy that must now put all your learnings to the practical test. Now is the time to research on those great companies (wide economic moat, way undervalued, history of consistent earnings, Low or zero debt, high ROE) and buy them at huge discounts when NOBODY WANTS TO TOUCH STOCKS. When the market turns around (anywhere from 1 month-12 months), you will be those very few who can say that the crisis was where you made your fortune and laugh all the way to the bank.

This is exactly what our dear Warren Buffett is doing right now, spending billions buying up companies for just pennies to the dollar. He just bought up GE, Added to UNH and also GS. The safest thing you can do is to look at non-financial stocks (the financial stocks have assets that are just too complicated to value) or even just simply buying the Index ETFs! That is a no brainer!

As I have always used a consistent dollar cost averaging model, I will not be looking to time the market so much. Rather, I will just happily and consistently add more and more very good stocks to my portfolio REGULARLY at these really great bargain prices.

Goodie…A Recession May Be Coming Soon!

9 Months ago, I mentioned to all of you (in my earlier postings) that the US will not be entering a recession as the boost from US exports (from a falling US dollar) and steady consumer spending will keep moderate growth DESPITE INCREASING OIL PRICES and the financial crisis. Sure enough, the last two quarters of GDP growth WERE POSITIVE and kept the US out of recession.

However. I now think that there is a big possibility that a RECESSION WILL BE COMING. Here are the reasons (extracted from moneycentral.com- Jim Jubak)

1. On Sept. 24, the Commerce Department reported that sales of new homes had dropped by a seasonally adjusted 11.5% in August from July’s already low levels. Sales of 460,000 for the month were down from the 520,000 new homes sold in July and the 500,000 sold in June. Sales for August 2008 were down 34.5% from sales in August 2007 and reached their lowest monthly total since 1991.

2. The Labor Department reported that new unemployment claims had risen to a seasonally adjusted 493,000 in the week ending Sept. 20. That was up from 461,000 the week before. The total number of new and continuing claims climbed to 3.5 million, about 1 million more than at the same time in 2007. Recessions typically see new weekly claims rise to 500,000. The economy isn’t quite there yet, but it’s getting very close.

3. New orders of durable goods — cars, furniture and other items that are expected to last three years or more — fell 4.5% in August, the Commerce Department reported, after posting slight gains in July, June and May. Even after the exclusion of orders for aircraft, which fluctuate wildly from month to month, and automobile sales, which everyone knows are in the tank, new orders were down 3% in August.

4. Consumer spending is starting to be cut and the rally in the US dollar (because of the plunge in Europe) will hurt US exports as well.

So, Why the Hell is this Good?

Recession = Stock Market Recovery

As crazy as it may sound, the START OF RECESSIONS often signals the ENDING OF A BEAR MARKET.

Take a look at the timing of the bear market of 1973-74 and the recession of 1974-75. This 21-month bear market resulted in the S&P 500 500 Index falling 50% from January 1973 through October 1974. The economy didn’t actually go into a recession until the third quarter of 1974. Economic growth fell 4.4% in the third quarter of 1974, 2.2% in the fourth quarter of 1974 and 5.1% in the first quarter of 1975.

If you compare the timing of the recession and the end of the bear market, you’ll notice that the stock market bottomed in October 1974. That’s at the beginning of the fourth quarter. At that point, the recession had just begun and had another quarter and two thirds to run. From the end of October 1974 through the end of March 1975, while the recession was running in full roar, the S&P 500 ACTUALLY CLIMBED 13%.

Because STOCKS DO NOT REFLECT THE ECONOMY but ANTICIPATE IT, the stock market rallies before a recession actually ends. And it was the visible onset of a recession that, in the case of the 1974-75 recession, helped the stock market find a bottom.

So let’s hope that the actual economic recession will come and start signaling the start of the new bull market and the creation on our next fortune.

In my books on business and wealth, I often write that one of the most important skill you can acquire in life, that will directly impact your quality of life and income, is the ability to SELL.

We are now looking for a select group of people who are passionate about building themselves a great income with this ability. Of course you must love interacting with people and belief strongly that what we do here at Adam Khoo Learning Technologies Group impacts lives.

If you want to start building your wealth with my company, share a similiar vision with me, and experienced at selling, go ahead and send your CV to my Program Manager, Perry Lai.

State your interest to join us as a Program Consultant.

Send it to perry@akltg.com