For investors who Voulez-Vous a market with low volatility, steady returns and no currency risk, Singapore is the market to be in. In contrast, less savvy investors might meet their Waterloo in US tech stocks and cryptocurrencies, with declines of up to 70% in a potential winter. Or, for those waist-deep in China and Hong Kong tech, send out an SOS. Indeed, staying home this year has made investing more than rewarding.
My last two columns, written before and after my back-to-back trips to China and Japan, were inspired by Guns N’ Roses (Coming November Rain harks to heavier fund flows, Nov 3, Issue 1213) and Bon Jovi (Slippery when wet from high liquidity, Nov 24, Issue 1216). It never occurred to me that they were mainly perceived as macho rock bands, thereby leaving out the other half of the population.
Given that markets are even-handed, up or down or win or lose, and the adage has it that bulls and bears make money in different parts of the cycles, but pigs who don’t do homework get slaughtered, this week will be an ode to the more inclusive Abba. Indeed, we will Thank You for the Music, as the Singapore market reached an all-time high of 4,575.91 points on Nov 13, with the Straits Times Index (STI) delivering gains of nearly 20% year to date, excluding dividends.
