Two years have since passed since the start of the pandemic. In 2020, The world came to an almost standstill with an unprecedented shutdown of global economies due to the coronavirus pandemic. As a result, the Federal Reserve (Fed) of the United States announced that it would drop its benchmark interest rate (fed fund rates) to near zero and would purchase as many US government bonds (Treasury bonds) and mortgage-backed securities (tied to residential and commercial real estate) as needed to support the economy and financial system.
Since then, most countries have since transited to some form of endemic living in 2022. The US stock markets also reached an all-time high at the start of 2022. However, the unlimited quantitative easing has also caused hot inflationary numbers, with many economists and analysts predicting at least three to six interest rate hikes this year alone.
To add to these uncertainties, the Russia and Ukraine crisis has caused commodity prices to soar. The impact is being felt by all, from the average consumer to large manufacturers. Prices for everyday products like biscuits and raw materials like metals and oil have risen across the board at the same time.
These tsunamis of events can cause investors to have a sense of trepidation and wooziness from not knowing how to position their portfolios for 2022.
Whether you are a beginner or seasoned investor, there are something for each of us at this year’s Singapore Trading Festival 2022 from 26 March 2022 to 3 April 2022. Organised by the Singapore Exchange, together with EquitiesTracker, the theme for this year’s event is “Unstoppable Trends: The World Ahead 2022”. You can register for the event .
Here are some key questions that we may have as investors during this period of market uncertainty.
#1 I Am New To Share Investing. Should I Start Investing In This Post-Covid Environment?
New investors often hold the notion that there is a perfect time to enter the markets. This is far from the truth. Investors need to adopt a trading methodology that suits their temperament and style. This will give them the confidence to invest in the stock market regardless of the market trend.
The common advice given to new investors is to start investing early and regularly. However, new investors may still have some hesitation on the implementation, especially when markets are volatile.
For more ideas on the different trading methodologies, investors can attend the talk on trend following by renowned international speaker, Michael Covel. He will be speaking as the keynote speaker at the Singapore Trading Festival (STF) 2022 on Day 1 of the event.
Investors keen on learning about improving their own trading systems can attend the talks on “ABCs of a Trading System and How It Can Help You Grow Your Portfolio Even If You Are A Complete Newbie” and “The Three Key Pillars to Identifying Your Ideal Trading Profile & Profitable Strategy” as they cover the basic principles that investors need to follow to achieve consistent and profitable trading results.
Read Also: How To Start Investing As A Young Investor, Tertiary Student Or NSF
#2 What Are The Major Trends And Sectors To Watch In 2022?
During the height of the coronavirus pandemic, the healthcare sector and “Work From Home” related stocks did well. As we move towards endemic living, the trends and sectors to look out for have also changed.
The Fed is slated to start its quantitative tightening sometime around this year. Furthermore, the war between Russia and Ukraine has also affected the dynamics of the market and its trends.
Investors looking to get some ideas on the big trends and sectors to watch out in 2022 can tune in to the sessions on “Post-Covid Trading Themes for 2022” and “Semiconductors – The Next Trillion-dollar industry?” and “Big Sector Moves in Early 2022” from the STF 2022.
Read Also: 4 Investment Themes To Think About As Singapore Starts To Reconnect To The World In 2021
#3 How Will A Rise In The Interest Rates Affect Stocks?
The unlimited quantitative easing initiated by the Fed to support the economy during the onslaught of the coronavirus, has caused inflation to spike. Many economists and analysts are predicting at least three to six interest rate hikes this year alone.
Theoretically, a higher interest rate environment generally correlates with a weaker economy as businesses would reduce their investments due to the higher borrowing costs. But is this true?
Giving her insights on this topic is Chun Fei Lin (Saxo Markets), who will talk about “How to Invest in an Inflationary Environment” on Day 2 of the Singapore Trading Festival 2022.
Investors should also attend the talk on “Rising Interest Rates 2022” to understand the impact that higher interest rates will have on the stock market. The experts will also be sharing how investors can protect their portfolio and take advantage of the rising interest rate environment.
#4 Can I Still Invest In SREITS? How Will A Rising Interest Rate Affect My S-REITS Portfolio
S-Reits can be considered one of the darlings of Singapore investors. They tend to provide a stable passive income for conservative investors.
However, with interest rates projected to rise at least three times this year, could the distribution per unit of S-Reits be affected? Reits take on large borrowings to finance their property acquisitions. Therefore, higher interest rates could be seen as negatively impacting S-Reits as the distribution per unit (DPU) could fall.
So, should we be investing in S-Reits now? How will the higher interest rates affect the S-Reits going forward?
To get answers to these questions, investors can attend one of the three talks held at the Singapore Trading Festival 2022. The first is “Singapore REIT sector outlook in a world of rising rates”. The second is “Are SREITS still attractive?” and the third is “Are Singapore REITs Ready for Rising Interest Rates?”.
Read Also: Complete Guide To Investing In Singapore REITs
#5 My China Stocks Are Losing Money. Should I Sell Or Buy More?
China’s economy was the first to be affected by the coronavirus pandemic, but it was also one of the first to bounce back. That is a testament to its economic resilience. Given its huge potential to overtake the US as a superpower, investors placed their bets on the big Tech Chinese companies.
However, a slew of government regulations and trade tensions have caused the valuations of Chinese-related stocks to plummet. To some investors, this presents a buying opportunity as the valuations are at an attractive level compared to their US-counterparts, whilst some might prefer to stay on the side-line.
For investors, who are uncertain about China stocks, they can attend the session on “China’s stock market not far from bottom. Buy these ETFs to ride the uptrend” on Day 3 of the STF 2022 to gain another perspective.
Read Also: 9 ETFs You Can Invest For Exposure To The China/Hong Kong Market
#6 How Will The Russia-Ukraine War Affect The Singapore Stock Market?
Russia began its military invasion of Ukraine on 24 February 2022. Fears of potential sanctions on Russia, a commodity-rich nation, have caused the prices of most commodities to soar to record levels.
These have implications at all levels of the value chain, from the average consumer to large manufacturers. The Straits Times Index (STI) has been somewhat of an outlier (positive for the year) compared to the US and Hong-Kong/ China based indices (negative for the year) in recent months.
Can investors continue to seek shelter from the resilience of the Singapore market? Sharing his insights on this is Daryl Guppy, the keynote speaker for the Day 4 of the Singapore Trading Festival. He will be sharing why the STI has more upside in 2022. Investors can also attend the “Market Outlook 2022: Will the Lion City roar on in the year of the Tiger?” to gain another perspective on investing in the STI.
Read Also: The Ukraine Crisis: Why This Could Be Time To Look At Singapore REITs
If you are interested in these topics, you can register for the event .
The Singapore Trading Festival 2022 offers investors an opportunity to gather insights from over 40 industry experts and international speakers at a time when the global environment is murky due to the potential interest rate hikes as the Fed begins its quantitative tightening and the war between Russia and Ukraine prolongs, which has a ripple effect on commodity prices.
Investors can pose their questions to these experts and pick up new ideas by attending these talks so that they can better manage their portfolio.
to get access to the Singapore Trading Festival 2022.
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