Sunday, January 20, 2008

Investing in the Singapore market

Dear Mr. Tan,

A few weeks ago, you suggested that a good time to invest in the Singapore market is at the level of 3,000 to 3,300.

The Singapore index is now about 3,100, but there is the risk of a recession in America. Is it safe to invest at the current level?


If you are investing for the long term, it is all right to invest at the current level (in my view). The market has dropped by more than 20% from its peak at 3,850. You may not be able to catch the bottom, so it is better to start investing. If you are unsure, you can invest in three tranches over the next there months.

If you are investing a monthly sum, it is all right to invest now. You can invest in the STI tracker fund, or the Combined Fund from NTUC Income (through the Flexi Link policy).

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