Dear readers, amidst the current stocks markets backdrops, there is one overlooked asset which no analysts really tell you about. You see, yesterday or the day before, I read one article where an analyst suggested investors to invest in REITs. And there were some in the investing quarter that suggested investors to load up on stock picks which are riding on the personal protection equipment (PPE) theme. Not forgetting others who have suggested investors that those Straits Times Index (STI) stocks that are trading at low prices could be good picks. Also to mention, Gold; which is often seen as a safe haven against bearish economic times.
From how I analyse things, the full effects of Covid-19 and the bearish state of the global and Singapore economy have yet to be fully felt yet. Before Covid-19, the global economy was already not doing well, and it has still not head for the worst only due to the fiscal stimulus by governments.
Given the state of the economy now, I would really believe there is reason for a global stocks markets meltdown to hit the global stocks markets soon and it is going to affect all equities including the oft-cited defensive REITs. There is all the possibility that even the so-called blue-chip Straits Times Index constituent stocks will still trend south.
Amidst the uncertain stock markets climate, there is one asset that no analysts really tell you about. One overlooked asset that can really stand you in these current times and the projected uncertain times ahead. And I am going to reveal here right here in this blog post.
This overlooked asset is none other than CASH.
Why invest your hard-earned cash in stocks when the trend is evidently bearish with no bullish catalysts?
Why invest your hard-earned cash in speculative situational plays now when the prices could already be much hyped up?
Instead, I suggest investors to hold on to your Cash.
Save more to buffer for your needs in these uncertain times.
Spend less on your “wants”
Prepare for an investment cash war chest to invest in stocks when many investors are fleeing away from the stocks markets and profit from it.
Could also consider to invest in some fixed deposits to earn some interest while holding your monies.
To add on, I have been liquidating most of my portfolio over the past two years and free up liquidity. I am glad that I have done so as many of these stocks liquidated have even gone lower now.
The upcoming stocks markets corrections will be in my views and what some have said “unprecedented”. Because it may be one where fiscal stimulus (aka printing monies) may not be enough and where it may take a long time to recover from.
Let us get ready for a stocks markets corrections next!
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