S&P 500 Index
Asked 2w ago
Hi all, if you have spare cash available what would you do?
1) Put in higher yield saving account
2) Invest Nikko AM STI ETF/Banking stock or REIT
3) Invest SPDR S&P 500
4) Short term endowment plan
Side note this amount not thinking to take out 1 to 2yrs time. But kept it as long term, knowing that economy is that bad.
If I were you, I will pump it into Syfe Equity100 since it is outperforming S&P500 and absolutely crushing the STI ETF. You can read up more about it in this article here.
The next thing I will do is to decide based on this capital, how often should I pump it into the portfolio given the fact that there will be more pain going forward. Stocks are going to take a hit but this is just my own personal take on the stock market. With gold prices surging, history has shown that when a safe haven asset is going through a bull run (like gold), it means the opposite is going to happen to equities. Again this is just my own view so due diligence is required! Hope this helps.
My suggestion is everything
1) I would put in the 2.5% interest rate singlife
4) I personally do not like endowment plan due to its liquidity. With given climate, its non guaranteed interest rate is at its lowest. I would rather invest myself or put in other saving accounts
2) STI honestly is undervalued but I dislike its distribution. I would prefer DIY. You can pay attention to bank. There will be short term bearish trend. Reits is near overvaluation
3) I will be careful with s&p 500 recently because it does not reflect against US economic performance.
For long term investment, I will suggest you explore Roboadvisors to help you manage your risk
My answer will be the closest to 3) where I invest in the S&P500 if I had to choose one option out of the five. However, I have personally invested in tech stocks instead and the selection of tech stocks in my portfolio has allowed me to beat the market consistently thus far.
It will also be important to state your risk appetite. Clearly, a saving account will be the choice that has the least risk.
Given that you are looking at a time horizon of 1 to 2 years. I would personally choose
to buy some of the undervalued stocks that were affected during this pandemic and ride it up over the next 2 years.
Portfolio : https://www.etoro.com/people/bryanlimyuqiang
I will invest in learning how to invest that could potentially give me the highest return with the lowest risk!
S&P500 is a great consideration, even better if you can beat the S&P500.
I've done that so far.
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