Dear readers, how to make monies and profit from stocks markets now? Especially when the stocks markets have been very volatile this and in recent years? The very recent showing of the US stocks markets pointed to another volatile trading season for 2020. Dow Jones, S&P 500 and NASDAQ retreated yet again, by 1.45%, 1.76% and 1.99% respectively yesterday.
Amidst the current stocks markets backdrop, I have not been investing since last year. Instead of putting capital in stocks markets which are inevitably going south with a more-than-a-decade stock market correction in the waiting, I have been accumulating a “warchest”, a “warchest” that could be put to very good use when the stock markets correct, many investors flee and you with the warchest could be picking good stocks at unbelievably low prices.
The stocks markets corrections happen only once in a decade or so. And when that happens, this could be really one of the best money-making opportunities for many investors.
But I do understand that many also would like to shrug off possible stocks markets corrections and stay invested in the stocks markets no matter what the stocks markets conditions are. In this case, I would encourage investors to look beyond individual stock picking but stay invested in a market-based index ETF to ride out the volatilities of individual stocks. I think many investors have this thinking that index ETF investing is not very profitable. Nothing could be further from the truth. Index ETF investing beats the performance of many stocks easily. For Singapore stocks, an index-based ETF that investors could look at is the STI ETF ES3.SI.