facebookHi all! I am a 20yo nsf who just recently got into investing during this period due to the fall in economies around the world. Should i invest in singapore stock market or US stock market and why? - Seedly

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Hi all! I am a 20yo nsf who just recently got into investing during this period due to the fall in economies around the world. Should i invest in singapore stock market or US stock market and why?

Which is a better option and why? What is more viable for me?

Discussion (11)

What are your thoughts?

In my humble opinion, US stock market is more volatile, and SG stock market is more stable. Depends on your risk/return expectations and risk tolerance. For SGX, go with utilities and government/Temasek-backed companies. Singtel, Capitaland and SBS are my top picks as they represent essential services. SIA, Keppel Corp, Sembcorp a bit risky due to cyclical downturn from COVID-19 at this point in time, where aviation and oil and gas have been suffering.

For US market, tecommend to try diversifying to both tech and non-tech, or if all else fails, just go with a low cost ETF like VOO or SPY to ride out the economic recovery. Do note that you may see sharper swings.

IMO, I would recommend investing in US stocks which are essentially the global big brands like Coca Cola, Apple which are unlikely to collapse completely as they have been around for a long time.

Some Singapore stocks are also good to buy at the moment, if you do your research. And, you can kinda say its easier to understand their financial situation bc they are mainly operating in SG.

Markets aside, a general rule of thumb is always invest in a business that you can understand, e.g. Coke earns profits by selling drinks to customers who purchase them. Know everything about the bucket you are putting your eggs into!

I think the US S&P500 is a better choice for two main reasons. Firstly, it has historical higher returns of 10% per annum over the last 80 years, proving its amazing track record compared to STI.

Secondly, the US market is so big that it basically represents the global market, and it is quite impossible for the global market to collapse completely. While Singapore is honestly just quite small in economy size and its ETFs has lower returns.

Maybe first invest in SG market with familiar local names you can analyze. Once you get your feet fully wet in the world of investing, then seek the embrace fo US stock market to broaden your stock selection list. Do rmb US dividends is subjected to 30% withholding tax, but it should not be a deterrent to invest.

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All in BBB Bonds...

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