Dear readers, it is no surprise that the online and offline media these days are replete with investment strategies for the upcoming year, given that we have just ushered in Year 2025!
From financial analysts and some well-known investment “gurus”, there have been different viewpoints and expectation about the Singapore stock markets and investment strategies for this brand new year.
If I may, there are only two commonalities that run across all the analyst and opinion pieces.
First are Assumptions.
Nobody can predict exactly what the future hold. All the analysts’ opinions are rooted in assumptions where a better word is called “Projections”. Even the tools used in investing analyses like fundamental and technical analysis do employee some assumptions too.
Second, after making all the assumptions, the article will close off with some caveats or on balance. In my view, these are to both inform and potentially safeguard interest of the author of the analysis pieces if they get something wrong.
Ultimately what the investment gurus or analysts express are viewpoints and everyone is entitled to their own viewpoints.
But what I have not really noticed as main points of all the analyst pieces is the importance for investors to keep their emotions in check. This is really because investing is actually an emotional affair which involves the interplay of fear and greed.
For example, Singapore stocks markets are currently trading at one of the highest. Buoyed by bullish investment analyst reports of even higher STI next year, some investors may start investing into the STI come first thing this year from just following the herd, after feeling optimistic by what have been recommended. These investors follow herd mentality and may not have an investment strategy.
That is why as we enter into a new trading year, I will just want to highlight again to all investors to keep our emotions in check when it comes to investing with our hard-earned monies.