Introduction
For those who follow financial news at heart, recently you might have noticed that the market has been generating not so good news. Volatile Chinese stock markets, Singapore’s poor economic growth, declining regional currency values and falling commodities prices are some of the not so good news that are being generated currently. With such kind of news, it makes one think twice about investing their hard earned money in the current market.
Regardless of the bad news, as a long time investor or a rookie investor, you already know that one can make money regardless of the crisis at hand. This is due to the wonders of the financial market. Over and over, experts advice investors to buy low and sell high. While this may not be simple during the current crisis, investing right now admist the falling markets requires one to have courage and the ability to tweak perspective in order to combat the irrational fear.
Below is where as an investor, you can find value when you invest in the current poor Singapore market.
Declining value of currencies
Recently, the Australian dollar hit parity with the Singapore dollar while the Asian currencies have declined in conjunction with the Chinese Yuan as of August 11th. Currently the only currency that seems to be growing in leaps and bounds is the US dollar but no thanks to the US Federal Reserve that is continuing to look into increasing interest rates.
As an investor, it is important to note that the dollar index trading is at its highest despite the current financial crisis, therefore you need to be cautious about investing higher. In order to ensure that your money is safe, you can opt to take advantage of the rising interest rates in order to buy into the money market funds in Singapore.
You also have another alternative which is the hot Singapore Savings Bonds or SSB in short. The SSB has made media headlines recently as it is a new type of government securities that is principal-guaranteed, provides greater liquidity and also offers you step up interest rates.
Commodities market
Some of the recent trends that are occurring in the commodities market include cheap oil and declining gold prices.
China today is a huge consumer of products especially due to its growing economy and large population. Chinese industries high demand for products such as copper while other economies are not doing well, results in lack in demand for commodities as businesses try to scale back.
With this in mind, products are tangible and have their usage therefore in a way there will always be a demand for them. The only hard part is picking a bottom. Regardless of this, it could play very well in the overall portfolio as the products usually become inversely correlated with the stock market therefore providing a better diversifier.
Equity
The volatility of the Chinese stock market recently spooked many investors but thanks to the quick intervention of the authorities, the market was stabilized. For Singaporeans who are looking to invest, the best way to do so is to put small amount of money each month to purchase in the Straits Time Index.
Bluechip shares are affordable and easy to invest in therefore they will help to remove the risks of market timing while ensuring long term growth prospects of blue chip companies.
For those who follow financial news at heart, recently you might have noticed that the market has been generating not so good news. Volatile Chinese stock markets, Singapore’s poor economic growth, declining regional currency values and falling commodities prices are some of the not so good news that are being generated currently. With such kind of news, it makes one think twice about investing their hard earned money in the current market.
Regardless of the bad news, as a long time investor or a rookie investor, you already know that one can make money regardless of the crisis at hand. This is due to the wonders of the financial market. Over and over, experts advice investors to buy low and sell high. While this may not be simple during the current crisis, investing right now admist the falling markets requires one to have courage and the ability to tweak perspective in order to combat the irrational fear.
Below is where as an investor, you can find value when you invest in the current poor Singapore market.
Declining value of currencies
Recently, the Australian dollar hit parity with the Singapore dollar while the Asian currencies have declined in conjunction with the Chinese Yuan as of August 11th. Currently the only currency that seems to be growing in leaps and bounds is the US dollar but no thanks to the US Federal Reserve that is continuing to look into increasing interest rates.
As an investor, it is important to note that the dollar index trading is at its highest despite the current financial crisis, therefore you need to be cautious about investing higher. In order to ensure that your money is safe, you can opt to take advantage of the rising interest rates in order to buy into the money market funds in Singapore.
You also have another alternative which is the hot Singapore Savings Bonds or SSB in short. The SSB has made media headlines recently as it is a new type of government securities that is principal-guaranteed, provides greater liquidity and also offers you step up interest rates.
Commodities market
Some of the recent trends that are occurring in the commodities market include cheap oil and declining gold prices.
China today is a huge consumer of products especially due to its growing economy and large population. Chinese industries high demand for products such as copper while other economies are not doing well, results in lack in demand for commodities as businesses try to scale back.
With this in mind, products are tangible and have their usage therefore in a way there will always be a demand for them. The only hard part is picking a bottom. Regardless of this, it could play very well in the overall portfolio as the products usually become inversely correlated with the stock market therefore providing a better diversifier.
Equity
The volatility of the Chinese stock market recently spooked many investors but thanks to the quick intervention of the authorities, the market was stabilized. For Singaporeans who are looking to invest, the best way to do so is to put small amount of money each month to purchase in the Straits Time Index.
Bluechip shares are affordable and easy to invest in therefore they will help to remove the risks of market timing while ensuring long term growth prospects of blue chip companies.