Dear readers, over the last two weekends, I read at least two articles where some businessmen interviewed commented that they have not been investing in Singapore stocks markets as the local stock markets here does not have much liquidity or volatility. And besides, when compared against other overseas indices, the Straits Times Index’s gain over the past decade has been very modest.
This may be indeed very true.
The Singapore stocks markets is not generally good for trading among retail investors due to the limited volatility range, as say compared with US stocks. But some expert traders will disagree with me by pointing it is not where you trade, it is how you trade.
Also, on a longer horizon, it is also true that Singapore stocks markets, based on the Straits Times Index (STI), has not been making the magnitude of capital gains that we see elsewhere example in the US.
Hence, is Singapore stocks markets a lousy stock markets? Or again, is it a matter of not what you invest but how good is your investing or trading skills?
I would think by and large the Straits Times Index (STI) ETF is still a decent ETF for investors with its decent annual dividend yields of around 3% and by virtue that it will not present to investors the risks of investing in just a single stock since it is an ETF.
Besides, if investors are to turn to overseas stocks or even for that matter, overseas ETFs, investors would have to contend with the risk of foreign exchange.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!