HOW TO PROFIT FROM THESE BAD TIMES ?

I had my clients who called me up asking about recent financial news on how much it will affect them. Common issues being brought up are like , is my investment safe ? shall I withdraw my investment /policy right now? where can I place my money now ?

I would like to highlight to everyone to stay invested and if you have spare funds, you can start to BUY instead of sell. I would support my claim with a simple graph below and share with you some financial history. So what is STI index in the first place ?

The Straits Times Index (STI) is a market value-weighted stock market index based on the stocks of 30 representative companies listed on the Singapore Exchange.
From Wikipedia, the free encyclopedia

In simple terms, it means taking Singapore TOP 30 companies which includes big companies like DBS, UOB, SPH and etc listed inside our market to mark an average and represent an index like what you see below. Therefore, when the price of STI move up or down will give you an indication of Singapore economy movement as well.

Let me share with you a story on the financial downturn in 1998. During the 1990s, Singapore is enjoying a boom in economy especially in the Property sector. A lot of Singaporeans made huge gains through buying and selling of properties then. However, in 1997 Asian financial crisis started from Indonesia and Thailand which causes STI index to drop from 2300 points down to just around 800 points in just 1 year. It means if you invest your money inside STI index, you are losing more than 60% of your money.

Singaporeans then faced big challenges and high unemployment rate. A lot of people sold their stocks then to cut their losses in the market. Big mistake !!

Little did they know that if they were to stay invested , in just a short 2 years time frame, STI went back to 2400 points and move all the way up to the highest peak at 2006 where it reaches 3900 points.

Base on the graph above, if you were to buy in at the wrong time of 1997, you are still making a good profit if you were to keep faith in market cycle where we understand what goes up will come down and vice versa.

Come back to recent financial crisis , we are experiencing the similar trend from the 1998 situation. Therefore, if you are thinking that you have invested in the wrong time, I urge you to keep faith in market trend where histories always repeat by itself. If you have not invested your money or waiting for the 'right time' , I will urge you to source out investment opportunities RIGHT NOW !!

With this in mind and you are experiencing time constraint to source a good investment yourselves. Allow me to introduce Prudential Singapore managed fund.

Singapore managed fund prices are very much link to STI index I share with you. This fund is investing into major companies in Singapore like UOB, KEPPEL CORP, DBS , SINGTEL and etc. Prudential provides you with Asset management team to upkeep the unit trust fund for you and all you need to do is to stay invested for a period of time for your money to out grow common interest rates we are all experiencing. Don't wait for another 10 years for this chance to pass by. Let us profit in this bad times together !!!

Cheers !!