Is it difficult to make money in STI ?
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Plotting a line graph over this random 10 years period, we can see that if one invest money into the STI, he made a loss of around 26% (if he sells out but breaks even at best if he holds till now).
Conversely, in the same time frame of 10 years, if he would diversify into US and invest in the SPX index (as often encouraged by legendary investor, Warren Buffett), he would make a good profits of 171% profits or roughly 17% per year.
However, it is not really fair to compare this two index since the composition of companies are very different plus the market cap of each index is also worlds apart. Not forgetting the liquidity component.
As such, the devils is in the details and that is where investors spend time researching individual company and look for hidden gem. Companies such as DBS ,dividends rich companies like REITS such as AIMS,etc.
Each market is unique on its own and being a local here in SG offers benefits of researching into banks like DBS, OCBC where one can go on site and see and feel for himself. Same things for REITS where one can visits the malls, office buildings , industrial parks, etc to have a feel of the business and footfall.
Investing in US on the other hand is totally different since most research is done online and whatever is published has to be taken on its own merits.
In a world of uncertainty, one cannot put all his eggs into one basket and thus diversification is crucial to one's investment portfolio from geographical regions to sectors to asset classes. Of course, your investment capital plays a huge part since it is futile to spread too thin just for diversification purposes.
That brings the question of having multiple sources of income and adhere to savings components (not lottery or casino wins) to assure recurring income that you can use to reinvest into the market when opportunity avails itself.
Conversely, in the same time frame of 10 years, if he would diversify into US and invest in the SPX index (as often encouraged by legendary investor, Warren Buffett), he would make a good profits of 171% profits or roughly 17% per year.
However, it is not really fair to compare this two index since the composition of companies are very different plus the market cap of each index is also worlds apart. Not forgetting the liquidity component.
As such, the devils is in the details and that is where investors spend time researching individual company and look for hidden gem. Companies such as DBS ,dividends rich companies like REITS such as AIMS,etc.
Each market is unique on its own and being a local here in SG offers benefits of researching into banks like DBS, OCBC where one can go on site and see and feel for himself. Same things for REITS where one can visits the malls, office buildings , industrial parks, etc to have a feel of the business and footfall.
Investing in US on the other hand is totally different since most research is done online and whatever is published has to be taken on its own merits.
In a world of uncertainty, one cannot put all his eggs into one basket and thus diversification is crucial to one's investment portfolio from geographical regions to sectors to asset classes. Of course, your investment capital plays a huge part since it is futile to spread too thin just for diversification purposes.
That brings the question of having multiple sources of income and adhere to savings components (not lottery or casino wins) to assure recurring income that you can use to reinvest into the market when opportunity avails itself.
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