Sunday, October 27, 2013

How has the STI performed in 2013 so far?

It's already the end of October now. Only 2 more months to the end of this year. So how has the markets performed so far? 2012 was a good year with the STI up about 17%. How about this year so far? A chart tells the whole story

The first arrow shows the STI performance in 2012. The second arrow shows the performance in 2013 so far. The conclusion? The market has been flat. All the gains in the first half of 2013 were wiped out in just one month and till now, the market has been flat. 

My portfolio has been flat too except for the one US stock which i bought that doubled in value. For the SG market, the returns are very minimal except for the average 5%-6% dividends i'm getting. 

Let's recap. The wiped off were mostly due to the fall in REITs. I've blog about the REITs phenomenon where almost all the reits fall at the same time here. This is due to the fact that the Federal reserve may end QE soon and cause interest rates to rise.

I still keep to my believe that interest rates will definitely rise in the future. No matter how long they delay the end of QE, it will still end. It is a matter of time. Property is still hot in Singapore. Reits were also hot in the market. This will end soon. Very soon indeed. Even our minister says property prices will not keep going up. Have you prepared yourself for what is about to happen? 

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  1. It is the hardest thing to stick to your investment strategy through all kinds of economic conditions. Rather than using an "adaptive" strategy which may not be anchored, it is better to stick to a strategy which is dependable and consistent.

    1. Hi MW,

      You're right. Maybe I should not use the word changed your investment strategy. By this I mean not chasing the hot stuff which what most people are doing for properties.

      If your investment strategy is dependable and consistent, stick to it. If its not, then better change before its too late. :)

  2. do you see the same chart pattern in dow jones using the same time horizon?

    1. Hi Money Honey,

      Dow jones is on the high side. It has already gone up 15% to date this year. That is why we're hearing that there are still opportunities in the Singapore market as it still has much to catch up. How true is that nobody knows.

      Personally, I think there are still undervalued stocks in the sg market. :)