I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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Saturday, 12 September 2020

Should I be very disappointed by STI poor performance since last Bull market in 2007 to grow my Net Worth?

 As retirees from full-time job without savings from monthly income; we are looking to Mr Market to grow our net worth; but STI is a poor performer! 

So how? 

Our neighbor grasses are so tall and green! 

Cross over or already too late?




Posted by CreateWealth8888 at 11:18
Labels:

5 comments:

  1. Spur12 September 2020 at 14:59:00 GMT+8

    S'pore constitutes 0.4% of world GDP, so if you have more than 0.4% of your money in SG it means you're overweight SG, lol!

    But really, if you're a 20-something know-nothing investor who just wants to DCA and buy-and-hold for the next 30 years, and would rather focus your energy on career ... then a global approach may be better.

    Over decades, a global index (or a US index, so far) has moved in the right direction i.e. from lower left to upper right. This is as should be as human economy improves over the years ... as long as the publicly-listed companies are a good representation of the wider human economy.

    STI on the other hand has been in a wide trading range over the last 25 years. Hence making the price you enter rather important if you're doing lump sum investing. The only saving grace of STI is a relatively high dividend yield compared to other countries, especially developed markets.

    However as Solomon (supposedly) wrote in Ecclesiastes: to every thing there is a season, and a time to every purpose under heaven ... otherwise known as reversion to the mean LOL.

    1991-1993: STI (105%) beats S&P500 (45%)

    1995-1999: S&P500 (220%) beats STI (11%)

    2003-2007: STI (160%) beats S&P500 (62%)

    2009-2010: STI (74%) beats S&P500 (35%)

    2015-2020: S&P500 (62%) beats STI (-26%)

    Who knows?

    When there are successful vaccines, and the rotation from tech/growth to value solidifies, we may again see another episode of 2003-2007. :P

    ReplyDelete
    Replies
    1. CreateWealth888812 September 2020 at 16:05:00 GMT+8

      Smart money moving in and out of STI. Still got hope! Don't switch out at wrong timing. LoL

      Delete
    2. hyom12 September 2020 at 22:55:00 GMT+8

      Spur,

      Your numbers show that it is better to invest in both STI and S&P500. The investor is likely to win when STI loses but S&P 500 wins. He is also likely to win when S&P wins but STI loses. What if both S&P500 and STI loses? Possible but less likely because stock markets have historically been in an uptrend over the very long-term.

      A global approach is better, as you advised, especially for those who have no time and/or interest in financial markets. Suitable for people whose human capital is not in financial markets.

      Delete
  2. Small Time Investor16 September 2020 at 08:23:00 GMT+8

    Uncle 8888

    This reminds me of my colleague lamenting how STI is 扶不起的阿斗 while other markets are rising, and other markets drop,STI drops as well

    Firstly STI doesn't comprise tech stocks

    Secondly, I asked her, why not you invest in Malaysia exchange? I heard the market there is rising well as well?

    She says because of exchange rate.

    Ahhh, now that explains why you came down from the other side to work, don't you?

    ReplyDelete
    Replies
    1. CreateWealth888816 September 2020 at 08:40:00 GMT+8

      Earn and invest in SGD. Accumulate wealth in SGD and sends back some RM for loved ones to spend in Malaysia. I am waiting to go back to RM2 shop, ha ha!

      Delete

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