Dear readers, the Straits Times Index (STI) closed at 2,591.60. Compared with the performance of the STI in 2018 where the STI reached as high as 3,600, the current level of the STI is considered cheap by some investors. Hence, some investors may be buying Singapore stocks right now with the view that the stocks markets may retrace higher once the Covid-19 pandemic is over.
What if I were to tell you that the Straits Times Index at its current level is below its level in May 2010 which is ten years ago? Some have even gone on to comment that Straits Times Index has had a lost decade. But I would think that this is just based on the capital point of view. If an investor had invested in the Straits Times Index since 2010, he would have reaped back more than 30% of his capital assuming the annual typical dividend yield of the Straits Times Index ETF is 3%.
I would view an opportunity a decade-in-waiting is coming. And it is going to reward investors who have been patient for the next stocks markets corrections.