1. Invest the money for 5 years to get a guaranteed return of 2% p.a. 10.9% 2, Keep cash and wait for market to drop by 10%, i.e. ST index of 2,600 28.3% 3. Wait for the market to drop by 20%, i.e. ST index of 2,350 28.3% 4. Invest in preference shares or REITS to earn a yield of at least4% p.a. 32.6%
More than 50% of respondents said that they would wait for a market correction of 10% to 20%.
Last night, there was a 3% market correction in USA. This will be followed in Singapore today. Over the next week, the market may correct by 10% or more. If that happens, it is time for long term investors to enter the market.
Tan Kin Lian
2 comments:
The market correction for equity will spread to the property market soon. Our high property prices are simply not sustainable. In China, the government is now preparing both the developers and the purchasers for an ultimate outcome by asking the banks to put in a stress test for a price drop between 40% and 50% from the current high. In US, the prices of the properties are yet to find their bottoms. The situation is especially worrisome for those who are over-leveraging their positions financially. Mr Tan is right in asking the young Singaporeans to be patient and NOT to rush in to buy high (at this moment) beyond their means. Many experts anticipate the situation will become worse after the next General Election.
It is normal to have few percents correction between August and October.
I believe this correction will be shallower than the previous one which happened around June-July.
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