Invest in the Singapore market

Dear Mr. Tan

I read your posting where you said that a 10% correction in the Singapore stockmarket will bring the index down to 3,500 but you prefer to wait for a level of 3,300 to invest.

The index is now at 3,440. Should I wait for 3,300? Will it go lower?

REPLY

Honestly, I do not know. It is difficult to catch the bottom of the market.

If you are investing a small sum monthly, it does not matter when you enter the market as you will be averaging the cost of your investment.

If you are investing a large sum, perhaps you can break it down into three installments and invest them over the next three months? The current level has already shown a correction of more than 10%.