Dear readers, if you are an investor still musing over whether a Buy and Hold Strategy will still work, I will like to share with you my views on the aforementioned.
In my humble opinion, a Buy and Hold Strategy will not be as effective as before simply because times have changed. In the Singapore context, Singapore’s fast industrial development stage like in the 1970s has passed. Hence in the past, when investors invest in those so-called blue-chip stocks, they would have enjoyed a good rally till say a decade before, after which the returns may have faded due to the new economy.
This is not uncommon since right now, we live in an environment where disruption is the buzzword. And where IT and tech disruption has the potential to disrupt business models.
As such, I would think it is not as easy as before to simply invest in a stock and wait for a Buy and Hold strategy to take effect since businesses are operating in a fairly challenging landscape.
Hence, for Sg Stocks Investing, the investing principle is to form a core of your investment in the core STI ETF, an index fund which theoretically will not go bankrupt like failing businesses. The STI ETF also gives good dividends and investors could invest in the ETF at opportune times.
Then after setting a core of your investment in the STI ETF, set aside some portion of your investment in potential multi-bagger international stocks which have the world as their markets and products which the world loves.
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!