Dear readers, yesterday I read a post about how a blogger has given up on the Singapore stock markets.
The reasons he gave are similar to what I have heard from fellow investors who have similarly exited from the Singapore stocks markets. Exit in this sense means no longer investing in the Singapore stock markets and for a number of investors, turning to the overseas stock markets in search for bigger profits.
The common reasons cited are that it is not easy to make big capital gains these days from the Singapore stocks markets, a number of stocks are speculative and even the bigger so-called blue chip stocks have been faltering.
I would think that for Singaporean investors, the Singapore stock markets, being home ground is a natural first stock market for Singaporean investor. It can also be a “training ground” for investors who are keen to tackle the overseas stock markets.
As an investor who invests in both Singapore and overseas stock markets, I can quite frankly say that the Singapore stock markets these days are no longer dynamic or at the very least seem to be very attractive for investors here. In my humble opinion, I think it boils down to the fact that the biggest and consistent winners here on the Singapore stock markets front are only confined to a handful of stocks and provided you know where these are.
That’s said, I do believe that the Singapore stock markets is still a relatively safe haven for investors who do not set off to hunt for big capital gains in the first place but treat investment as a long-term journey for sustainable, consistent capital gains and still decent dividends. A strong case in point is for a long-term investment in the Straits Times Index (STI) ETF.
Also, overseas markets are no less volatile as we have seen in recent years and hence it is not really true that the grass is always greener on the other side. But that say, selected overseas stocks do provide stellar profits and the challenge is to find out what these multi-bagger stocks are.
Wish You All the Best in your investing journey! And Thank You for reading SG Stocks Investing, Singapore’s most Sincere wealth creation, investing and lifestyle blog.