BUYING OPPORTUNITIES?
Since markets have fallen over the past two weeks, there could be opportunities to buy stocks that are trading at discounts, said Mr Sean Teo, a global sales trader at Saxo Singapore.
Investors who are looking to add to their portfolios should buy stocks that have proven themselves, and those that have come off their highs during the market swings, he said.
If the war lasts for a prolonged period, there may be even more discounts due to “emotional selling”, Mr Teo said. “Staying invested and sticking to your long-term plan matters more than trying to time every swing.”
Exiting the market could be costly if inflation ticks higher and erodes your buying power, he added.
When the war ends, he said stocks directly affected by oil would look more attractive, as their input costs go down and their profit go up.
Mr Ritesh said it is important to be diversified and disciplined.
“We’ve moved on from the broad rally we saw in the past few years, which got many investors used to instinctive dip buying,” he said.
He added that gold is a good buffer and can drive returns during uncertain times, while bonds can provide stability.
The US dollar could weaken when the war de-escalates, he warned. Investors should balance exposure to the US dollar with exposure to the Singapore dollar, he said.
The Singapore dollar has been relatively steady, and would remove currency risks for those who live in Singapore.
