Karen Tang, CFP®: Certified Financial Planner in Singapore

Is it A Good Time To Invest Now? When Is It A Good Time?

The short answer is: yes

Just about any time is a good time to invest, as long as: 

  1. The portfolio asset classes are inherently liquid
    By liquid, we mean it is easy, quick and inexpensive to transact (buy and sell) at current prices. Stocks, bonds, and funds that are widely held in developed financial markets are good examples of assets that have liquidity. Real estate, whole businesses, cars, and art are examples that have lower liquidity.

  2. The portfolio is diversified
    A diversified portfolio has several highly mutually uncorrelated assets and asset classes. By uncorrelated, we mean that the prices of these securities move independently of each other most of the time due to very different fundamental factors.

  3. Some attention is paid to the valuation of each investment
    This is to ensure that none of those assets or classes are over-inflated due to hype or a bubble.

  1. The investment time horizon is long term
    The investor is looking to hold good assets for a long time, not trade i.e. buy and sell often in order to “time the market”.

  1. The investor is committed to periodically rebalancing
    This refers to realigning his/her portfolio regularly – every 6 months to a year – to reset the proportions of the asset classes to what was agreed in the investment plan. This has the added advantage of taking some of the profits from assets that have risen fast, and putting into those that are still cheap or reasonably priced.

  1. This point is about greed and fear
    To ensure clarity and accuracy in your planning, this point requires an in-person discussion with Karen. Call +65-6252-8500.

  1. This point is about lowering costs
    To ensure clarity and accuracy in your planning, this point requires an in-person discussion with Karen. Call +65-6252-8500.

  1. The portfolio istransparent
    By transparent, we mean that the information about its components is readily available to the investor. Many multi-layered securities such as ILPs, due to their complex structure, are quite opaque as to exactly where every dollar is going.

  1. This point is about research
    To ensure clarity and accuracy in your planning, this point requires an in-person discussion with Karen. Call +65-6252-8500.

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