Your Ad Here

Thursday, August 7, 2008

Great Singapore Sale

Singapore market has good chance to do well in the next 1-2 years. However, volatility remains in the short term. In the previous month, Singapore's stock market fell, but at a less extent than most of its regional peers. Blue chip stocks are able to give 3.5% - 4% dividends, similar to govt bonds yield. This type of manner has historically resulted in good performance in the mid-term.

However do not buy aggressively at the moment. Keep at least 50% in safe assets like deposits, structured notes or money market instruments, until oil price soften to $120 per barrel.

I personally recommend a regular savings plan (RSP) into Singapore equity funds. Do it monthly in a consistent manner to tap on the benefits of dollar cost averaging. You can look into Schroders, Aberdeen or LionGlobal Singapore funds. In this way, there's good chance to achieve good returns in the next few years.

On the other hand, SGD has been recently appreciating in view of the inflationary pressure. Though MAS said they do not expect any changes until later this year, continous strengthening is expected.

No comments: