Asked on 08 Aug 2019
I would say, before going into what to buy, you can identify what's the return you are looking at, what are the risks that you are able to stomach, the timeline that you are looking at, and liquidity factor (whether you have enough extra cash)
ETF and the individual company are two different assets.
So for STI ETF, you are investing Singapore Market at large, as it is a basket of companies, the risk is comparably lower, as it spreads across 30 companies.
For Singapore Airlines, your return will only be based on Single Company, in other words, your risk is tied to a single company.
Not that I support market timing, but if you are convinced that Singapore stock is going bad, then why buy now since you can wait for the stock to crash and buy at a lower price?
If u feel that sia and Etf worth buying, go ahead and buy.
Price and value is different entity. Do your research and be better informed.
Is the current bad sg stock situation temporary or permanent?
You will want to buy when the stocks are low/cheap so not that bad an option to buy now yeah?
But of course, never know when is the lowest point of the curve so depends on your risk appetite as well. STI is abit more stable since it comprises of a basket of stocks. So if you have lower risk appetite, can consider ETFs. If u prefer more volatility, Singapore Airlines.
That being said, ETFs will probably recover faster since you won't expect all top stocks to stay low forever. Don't quote me, just my perspective on ETFs.
It is very subjective to determine a stock has gone bad just by looking at the stock market and share price. Whether how much it cost or goes up or goes down recently does not tell a full picture.
We will need to look at the underlying story behind each stocks. For Singapore Airlines, take a look at the business and try to understand how do they make money. Analyze their financial for areas such as red flags if they took up too much loan or if they are having good cashflow.
For STI ETF, while it looks like it is not performing, but do note that it is carrying the top 30 business in Singapore and at any point if anybody them are not performing, they will be replaced by the next top business. How bad it is owning the top 30 business at any point of time.
I'd recommend to stick with golbal or U.S. passive indexing ETFs
the Singapore market is to small
S-REIT ETFs though could be interesting