facebookHello. Looking at the current market, most of the stocks have fallen. I am thinking if should be buying? I am looking at SGX and i want to be a passive income investor.? - Seedly

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Anonymous

06 Mar 2020

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General Investing

Hello. Looking at the current market, most of the stocks have fallen. I am thinking if should be buying? I am looking at SGX and i want to be a passive income investor.?

I am not sure if it will drop further. Understand from my readings from this blog that there are two views - 1) duration in the market, less regard on point of entry 2) capital gains are important, more regard on point of entry as capital loss could wipe out dividends earned for many years

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Andy Sim

06 Mar 2020

HR Professional at a Financial Institution

Hi Anon, I believe to be a passive income investor, you'd want to do the minimal work and still receive the money. No one has a crystal ball to predict how the markets will head towards, so it is good to do DCA into the market to lower the total cost of buying the stock/ETF. Your stock/ETF should rise overall in the future if you've done your proper research and due diligence.

There is a saying that goes "time in the market is better than timing the market" We cannot predict how the stock market is going. If you had done your research and if the price is attractive to you, then by all means buy into the stock. In the long term, the stock should be rising upwards.

Do remember dca is not the answer to everything. For example the people who dcaed hyflux must be kic...

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