Asked 2w ago
Behind every stock, there is a company and its business environment is constantly changing due to competition, macro outlook, customers behaviours, government intervention, etc.
Hence, that said there is no "safe stocks".
Remember that police banner around our neighbourhoods that say "Low crime doesn't mean no crime"?
Lower risk of insolvency or business going down hill doesn't mean no risk. You will need to monitor these stocks too.
If you feel confident in learning and analysing about them, you can try your hands in stocks. Otherwise, DCA in US ETFs (you may want to go for Ireland-domiciled ones to have a lower witholding tax) with robo-advisors (or FSMOne) can be a viable option.
You can separate into 2 parts.
1 part for DCA into S&P500 through FSMOne, because DCA through brokerage account such as DBS Vicker, Saxo etc will be too expensive, so RSP is your best tool for that.
The 2nd part you can save as your warchest. Say, you say $500 a month for 6 months, and after 6 months, you invest the $3,000 in a growth stock that you like. You shouldn't DCA here because the commission/ fee will eat into your return. But please do intensive research on the company you want to buy because you do not want to just dump your 6 months worth of warchest into a random company you heard from the taxi uncle.
There are no safe stocks, which is exactly the point why you should look for
passive stock indexing ETFs. Yes, with a cheap online broker You can DCA all DIY.
My strategy when I started venturing into US market is to first DCA into S&P500 ETF for instant diversification to the US market.
Next, I will look for individual companies to invest in when I feel confident and experienced in the market.
So I guess you can do the use the strategy as I do.
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