My investments took a tumble again.
With the US imposing tariffs on trade with several countries in particular with China, the world is on edge. The Federal Reserve of US (Fed) is also increasing benchmark interest rates faster. This did not help to calm the investment community.
My Singapore equity consisting of mainly blue chip stocks of the STI component stocks declined over the past weeks. As a whole, it declined 23.6% from my costs of purchases. Some stocks were bought as far back as in 2008.
I am of the opinion that to pick stocks for investments is harder with the volatility of stock markets. After buying them, I see them declining later.
Holding cash seems to be an option for now. If inflation is benign, then cash will not be eroded due to inflation. Sometimes one wonders whether it is far better to spend money than to invest and then see one’s investments losing values. That is the stage I am at. I have no confidence in investing right now.
Some would argue that we have to invest for a secure future. I then would add that you have to look at both your current investment objectives and your risk profile to determine how you want to go about building your investment portfolio. That is theory and I know it is not easy to get it right.
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