Singapore Equities..............All Time High......What To Do?

Hi Prudent Lee,

Great question. Our earlier article in December, 'To Sell or Not To Sell' is still relevant, however, we would like to share more of our thoughts with you.

If you are already sitting on capital gains in excess of 40%, we would certainly advise you to take some profit 'off the table'. Take for example, if you started out with S$1,000 and it's now valued at S$1,500, it's prudent to take out at least the profits of S$500, which means you 'lock in the profits'.

Assuming you are still bullish about the Singapore equity market, then, let our principal amount ride the the next wave!

In our earlier blog article, we talked about two situations that may impact the Singapore equity market; 1) global slowdown with the U.S. taking the lead and 2) post corporate reporting season, the markets will consolidate before the next push upwards.

We are of the opinion that the above two points are still relevant, however, Singapore has something more significant going over her.

In the last quarter, more than S$500Million flowed into Singapore via private equity and venture capital funds investing in Singapore companies both listed and unlisted. This has helped keep the Straits Time Index well supported and on the up and up.

In the last quarter, more and more MNCs are setting up offices in Singapore plus more and more companies MNCs in Hongkong are relocating their OHQ and RHQ to Singapore. This has caused office and residential rentals to spike upwards, and again...........the equity market to be well supported. Moreover, there is an increasing number of expatriates who have applied to be PRs and making Singapore their home; they use their savings to buy real estate and also invest in the Singapore equity market.

In the last quarter, both IR projects were approved, tendered and awarded. This will create considerable jobs in the whole supply chain of the construction industry plus peripheral service industry/sectors.

Despite the economic slowdown in the U.S., the momentum of intra-Asia trade and commerce plus Europe, India and China looks sufficient to support strong growth in Singapore. There is also the Middle East; Qatar, Dubai.............etc.........the whole country is buzzing! Singapore corporates are tendering for jobs and contracts there.

If all the above has convinced you, then, take out your profits and enjoy it and let the principal investment amount ride....................!!!!!!