facebookIs it true that buying the STI in bad times and selling it in good times is far more profitable than buying the S&P 500 over the past 25 years? How do you prove this? - Seedly
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Anonymous

Posted on 24 Feb 2020

Is it true that buying the STI in bad times and selling it in good times is far more profitable than buying the S&P 500 over the past 25 years? How do you prove this?

Private investor Bernard Tan made this claim on the ST Invest section on 23.2.2020. Buying the S&P during bad times and selling it during good times seems more profitable imo, as it's performance seems to be better than the STI. Can any expert provide testing data to prove the case?

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3 answers

Discussion (3)

Yang Teng

Yang Teng

Level 15. Grandmaster

Updated on 24 Feb 2020

I'm no expert myself but based from the two graphs, I can reasonably deduce that one is a better invesment than the other.

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Andrew L

24 Feb 2020

Thank You! But you did not answer my question.

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Frankie Rappaport

Frankie Rappaport

Level 16. Sage

Updated on 29 Feb 2020

This is a good, but only a theoretical question because these are different investing strategies,and how about comparing against buying the SP500 in bad times and selling it in good times?

Evidence shows that even professional fund managers are not capable to market time,

even less so then we retail investors. How can one have a definition of 'bad times' and 'good times' as entry/exit points? This would be the basis to answer your question for data.

There could be a hint in the following longterm chart (STI versus SP500), that suggests STI had more volatility, but then remains the question: how could one have known, the optium entry/exit points (my feeling: completely impossible, but only post hoc)

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Post

AL

Andrew L

Level 2. Freshie

Posted on 24 Feb 2020

From the chart, ait was clear that SPX gave better return becuase of high volatility. But last Sunda...

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