Asked on 21 Jul 2019
I'm sure many are aware of the looming recession. But do you think I should begin my STI ETF investments given the conditions? Also, does anyone have personal examples of annualised return % of their DCA investment of STI ETF for the past few years?
There is never a perfect time to invest. The best time is now.
No one will know exactly when the market will go down. So the best is to stay invested and stick to your investment strategy and rebalance your portfolio accordingly.
You may also want to keep a “war chest” to put in more monies when you think the opportunity has arrive.
Also good to seek professional advice when you are unsure too
I would recommend to think ultra-longterm, so even a 'current recession' (?) is
not an argument to not being invested.
However Singapore is a small market, when the U.S. stock market is the most important
one as also the most successful one. For Singapore maybe the S-REIT sector is more
interesting, and because of it's true singapore focus, the best ETF to me seems Lion-Phillip S-REIT ETF.
For U.S. investing SP500 index with ETFs: VOO or IVV are decent choices, very successful in the past.
For the last 10 years STI was an underperformer (see the chart).
Yes, many are aware of the looming recession but when will the market start to do downwards, that is the real unknown. No one knows. Even with possible trade wars and what, the markets just keep getting higher.
So, the key is to keep investing, stay invested over the long term and hold on.