Dear readers, in today’s post, let me share three hard truths related to stocks markets for investors.
1st Hard Truth: Stock markets crash
The next global financial stocks market meltdown should be on the horizon, from all the indicators that we have been reading.
Personally, I believe the Singapore Straits Times Index (STI) will hit 2,000 when stocks markets undergo a financial meltdown. I know this may not be welcome for investors who are thinking of entering the stocks numbers in the near-market. Given the growing uncertainties in the global financial and stocks markets, the trend is evidently downward. This is one hard truth that investors have to grapple with.
2nd Hard Truth: Reduced Dividend Flows
Given the ongoing Covid-19 and the uncertain state of the global economy, made worse with inflation and it is very possible that businesses reduce or stop paying their dividends to investors who have been holding on to the stocks for dividend income. In fact, this is what is happening for the dividend flows of a number of companies, including some which have a track record of paying dividends!
This is another hard truth for investors. Imagine having parked a main bulk of your capital in investment to earn dividends only to note that dividends are being cut or reduced.
3rd Hard Truth: US Dollar
This Hard Truth is for investors who invest in US stocks.
For US stocks investors, I know that some selected US stocks may offer potential of multiplying one’s capital multi-time especially if these stocks are potential multi-baggers.
But I really have to warn investors to be careful of how the US dollar play out against other currencies. Some go as far as saying that the US Dollar may crash one day. Hence this is a Hard Truth that the US Dollar may not be as resilient as before.
There we have, three hard truths for you to think about, for your Investments!