Sunday, January 3, 2010

2010: New Beginnings

Unlike in America, the local stock market churned out a better performance over the past 10 years. 10 years ago STI was about 2,400 and now it is 2,800. America on the other hand has had difficulty breaking 10,000. Will the next ten year be better for people who invested in stocks?

I think the main theme for next year will be how the US recovers. I strongly believe that much of the stock appreciation has been due to investors turning to emerging markets as a safe haven from a possible American implosion. Nonetheless, if you do have the money, you should buy some ETFs that track S&P500 so as to capture some of the possible upside once the US settles its own problem.

Stay invested in January, as FY09 earning results will be coming in end Feb. There should be some upside (10% or more) if you hold from the first week of Jan (which is next week) till when the financial results are announced. STI wise, there should also be upside. Prudent investing applies but you should not let those worry warts with their calls of a double dip worry you.

Anyway, here is a short blurb from Shares Investment on their stock picks in 2010

Invest Globally Locally
“Riding the global economic recovery” is the theme for our 2010 stock picks. We are confident that SGX-listed companies with operations outside of Singapore will be prudent investments for 2010. With limited domestic opportunities, overseas markets represent significant opportunities for solid businesses to tap into and boost their revenue stream. Sector wise, we are also sanguine on the prospects in energy and technology as capital investments and consumer spending put on hold in 2009, will flow back in 2010.

Click here to read more

I also found some nice stuff online but more to American markets

From MarketMinder:
  •  As 2009 comes to a close, it’s a good time to remember good investors look forward, not back.
  • Fisher Investments believes continuing pessimism—shaped by main street investors who’ve yet to buy into this market recovery—is the foundation of the wall of worry bull markets love to climb.
  • Second years after a bear market bottom are typically positive and above average (Fisher Investments research).
  • The S&P 500 has already regained half the losses from the 17-month bear market—sooner than most would have imagined possible, but also a clear indication we’re in the midst of a true V-shaped recovery.


  1. If you account for stock splits, rights, and dividends, STI over the last 10 years performs better than any other asset classes. By the way, STI composition has also changed drastically over the last 10 years.

  2. i agree with you... however this fact is seldom published to the general investing public... the same goes for the S&P 500 and DJIA where people doomsayers are claiming a lost decade...

    But by the way, have you factored inflation as well? nonetheless i do not deny that stocks are a superior asset class but Singapore does not have the lowest cost STI ETF... 0.28% p.a expenses is quite high actually