Dear readers, how have you been?
In today’s post, let me share one important thing about investing right now.
Yes, one important thing about investing right now that all investors should and must know.
It is not every time that I share important insights about investing and so when I share, hope you readers can read and support what I have shared.
As we know and note, all around us, banks and financial institutions are paying average yield of about 4%. And that is why we have individuals flocking to banks and financial institutions in droves to sign up for the attractive fixed deposits offering such good returns.
At 4% dividend yields, this means that savers are technically reaping an interest yield that is almost comparable or even higher than many of the so-called defensive dividends stocks, and at a very advantageous benefit: capital risk is nil or little. For a while, forget about Reits and Business Trusts: while these equities supposedly give high dividends, just take a look at the capital performance of some of these Reits and Trusts.
So, if savers can reap a risk-free or lower risk dividends from high fixed deposits, then the only rationale of staying invested in stocks will be capital returns.
And in terms of capital returns, today’s stocks markets are very volatile and hence investing at different entry points may not be optimal unless one wants to apply the so called long-term investing to ride out volatilities to achieve some capital yields.
Hence, in order to minimise risks in terms of investing for capital, I strongly recommend investors to now continue to build up your investment warchest and wait for good opportunities to buy into good stocks at discounted prices.
Better still, invest in those good stocks that also pays dividends so that investors can not only gain capital but also dividends yields!
I hope this investing advice is useful. Have a Good Day! And I look forward to your support for SG Stocks Investing: Your Money & Lifestyle Magazine.
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That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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