For Singaporean investors, the age-old question arises: where to park your capital? Two popular options are the local Singapore Exchange (SGX) and the behemoth S&P 500, representing the US market. Let's delve into their performance to guide your investment decisions. Understanding the Titans SGX : The Singapore Exchange is a premier bourse in Southeast Asia, offering a diverse range of assets like stocks, bonds, derivatives, and Exchange-Traded Funds (ETFs). S&P 500: The S&P 500 tracks the performance of 500 leading companies listed on US stock exchanges, representing a significant chunk of the American economy. Performance Check Historically, the S&P 500 has been a strong performer, averaging around 10% annualized return. However, past performance doesn't guarantee future results. Looking closer, you'll need to consider a specific timeframe. Here's a brief comparison: Short Term : Both markets can experience volatility. Recent events can significantly
The worst thing one can do is to sabotage their own financial plans by engaging in the senseless behaviour of panic selling and panic buying. The recent financial turmoil arising from the subprime crisis in the US has unnerved many investors. Just months ago, many investors were still looking at increasing their investments for fear of missing out on the attractive returns that were being dangled by the various well performing stock markets. Why is it that we find it so much easier to invest our money when markets have headed up significantly and find it so difficult to invest our money when markets are depressed and downside is limited? Much research had gone into analysing such investor behaviours and it largely boils down to panic buying and panic selling. When markets are on an uptrend, the good news abound and money appears to be readily available on the tables for anyone willing to reach out for it. Investors are afraid of losing out on pocketing the potential profits with each d