SGX stocks keep falling while US stocks keep climbing... Looks like the biggest mistake in this pandemic is to stick to SGX stocks.?

Hi there,

If you do look at most stocks in SGX, growth has been rather slow due to a multitude of factors.

Over a 10 year period, if you would have invested 10k in the STI index, you would have be down 17%. Contrast that with the S&P 500, the positive difference accounting for COVID would be 217% increase in your net holdings.

Singapore has never been a very innovative country, and with no organic industry to spearhead development in the world arena, this data correlates with the market performance. Investing in SGX stocks, rely boils down to what you want to achieve for your portfolio, if you are looking for dividends, Singapore is considered one of the best markets to do so. If you are looking for growth, its better to look elsewhere.

Hope i was able to address your queries!

*This does not constitute as investment advice. Please do your own due diligence when making investment decisions.

More like the biggest mistake in the last two decades has been to stick to SGX stocks.

I have never invested in Singapore equity in my years of investing.

It is not surprising given the last two decades. How often do you see new companies rise up and go public in Singapore, and enter the STI as compared to the 1990s and 2000s?

In US, the companies switch in and out every year. With new companies reaching astronomical heights within a span of a year or two.

SGX is a great cash cow, but with regards to growth, which has been the predominant factor for the rise of US equity, I would reassess the role of the stocks that the STI delivers if I am looking for capital gains.

Most notably, capital gains are not taxable. Dividends are.

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