Sa Pa Storms to Market Crashes: 5 Parallels from Northern Vietnam Tour

It has been a long time since I last joined an organised tour for an entire trip. Generally, my family and I prefer setting our own itinerary, exploring at our own pace, and avoiding the rigid structures of group travel.

However, this time was different. This wasn’t just a family vacation; it was a getaway with my buddies since my Junior College (JC) days and their families.

Coordinating logistics, flights, and administrative details for a large group is a massive headache. Deciding to hand that over to a tour agency saved us a mountain of coordination work.

The bonus?

Because our group was large enough to be the sole participants of this tour, we effectively had a “customised ETF.” We could tweak certain parts of the itinerary and maintain some leeway to adjust our daily pace.

For example, while food was plentiful in both variety and amount throughout the trip, nothing beats what we had at the Hanoi restaurants specially requested by my friend: Tầm Vị and Pizza 4P’s.

In a way, it felt exactly like my decision last May to invest in the Amova-STC AREIT ETF (CFA). With that move, I outsourced the heavy lifting and homework required for monitoring the broad basket of individual S-REITs.

Yet, retaining specific direct stakes in Frasers Centrepoint Trust (J69U) and Parkway Life REIT (C2PU) is just like our special request for the dining places – it allows me to layer high-conviction picks on top of a solid, passive foundation.

Beyond the food, there is so much to reminisce about from this trip.

But as I recall them fondly, I realised just how closely our journey through northern Vietnam mirrored the realities of navigating the stock market.

From City Hustle to Serene Bays: Matching Strategies to Your Style

While Hanoi, Sa Pa, and Halong Bay are all situated within northern Vietnam, each destination offers a fundamentally distinct environment:

• Hanoi: A bustling, fast-paced city energy.
• Sa Pa: Cool weather and magnificent, scenic mountains.
• Halong Bay: Serene waters and relaxing marine activities.

This geographic diversity is just like choosing between growth stocks, dividend stocks, or short-term trading. You have to choose the asset class and strategy that align with your specific temperament and financial goals.

Even at the activity level, choice matters.

At Halong Bay, you can choose to actively paddle a kayak or simply sit back and let someone else row the bamboo boat. If an activity like alpine sliding or mountain trekking doesn’t appeal to you, you can simply sit it out.

The same applies to stock selection–you don’t have to invest in every recommended stock.

If a business model or an entire sector feels too speculative or outside your circle of competence, you can choose to sit on your hands and watch from the sidelines.

The very awareness of what appeals and makes sense to you likely determines if you would enjoy the trip or succeed in your investment journey.

Braving the Rain: Standing Firm Through Market Volatility

Before we arrived in Sa Pa, it had been raining heavily for an entire week. While the weather forecast teased an improvement, the elements caught up with us when we ascended Mount Fansipan.

Despite the local guide telling us in advance how the temperature would drop after the cable car ascends the vertical altitude difference of 1,410 m between the stations, it was only when the wind and rain hit us that we experienced the cold!

Fortunately, we geared up for that and successfully reached the Roof of Indochina at 3,143 m.

Sounds similar to your investment journey, yeah?

Market downturns and volatility are part and parcel of the investing journey. You cannot opt out of the weather, just as you cannot opt out of market cycles if you want to participate in equity returns.

And no words can sufficiently prepare you for that until you experience it yourself.

With the appropriate gear (a clear goal and a resilient mindset), you can withstand the temporary discomfort of a down cycle, and talk and laugh about it after that.

But sometimes, the market gives you more than just a passing rainstorm.

Sometimes, things break.

The Parking Lot Accident: Unexpected Market Crashes

Two buses. One empty carpark. What are the odds of a crash?

Or perhaps that’s why it happened—because we let down our guard.

The positives from the mishap were:

• Low Impact: Our bus was reversing at low speed when the crash occurred. While it shattered the window of the other bus, thankfully no one was hurt.
  
• Calmly Resolved: While I am sure there was an undercurrent of anxiety, it was amazing to see both drivers settle the mishap peacefully. There was no shouting and no finger-pointing. They simply patched up the window, got the necessary administrative work done, and continued driving us to our next destination.

Market crashes often strike when and where you least expect them. Just when the macro environment seems clear and you feel you are in a safe “parking lot,” an unexpected risk manifests.

When these shocks occur, the best approach is to stay calm, review the damage, and patch up your portfolio for the journey ahead.

After all, the storm never lasts forever.

Sunny Skies After the Storms: Outlasting the Downturns

Without the rain, you can’t get a rainbow.

While we didn’t manage to catch a literal one on this trip, we found them in other ways—like the rainbow stairway at the Rong May Glass Bridge and the Rainbow Slide at Cat Cat Village.

What was more important, though, was that the weather eventually cleared up, granting us some dry, clear hours to explore the beautiful landscapes and enjoy the activities.

History shows that the periods of strongest expected returns come after the sharpest market crashes. The markets eventually recover, and the sun shines on patient investors.

However, there is a catch: you only get to enjoy the sunshine provided you survive the crash.

To ensure you survive, you must:

• Allocate your assets carefully: Maintain a robust cash buffer to tide you over the storms.
  
• Minimise leverage: Leverage amplifies both gains AND losses. The last thing you need in a severe market downturn is for forced liquidation to eat into your capital.
  
• Invest in quality businesses: Not all companies recover from a downturn. Stick to businesses with straightforward models and the balance sheet strength to weather the storm.

Beyond the Numbers: The Journey Matters

Unlike my previous travel posts for Taipei and Hong Kong where I could easily break down the cost because I planned the itinerary, I can’t do a line-item audit for this group tour.

However, for a 7D6N itinerary featuring daytime Singapore Airlines flights, excellent accommodations, fantastic local food, and fun-filled activities, paying around S$6k for a family of four is an absolute steal.

But as I look back, the financial value isn’t what sticks with me.

What matters most was the uninterrupted quality time spent alongside my family and my lifelong friends. Without their companionship, the experience simply would not have been the same.

That’s exactly how I feel about my investments, too.

No doubt I strive toward my financial goals and want to hit various milestones. But if investing were purely about the profits, my sense is that I wouldn’t have been able to sustain the effort for this long.

What kept me going is the journey itself.

The hours spent learning and understanding how different businesses fit into our society and the broader economy. And in recent years, writing and synthesising these thoughts, both for my own clarity and to share with all of you.

When you align your portfolio with your life, you stop chasing the numbers. These moments become infinitely more valuable than the destinations.