If you had you scrolled through the Singapore Exchange website recently, you would have noticed that the buy lot is now changed to a 100 units. In December, we published an article letting in on the reasons to invest in stocks in 2015, and if you did heed our advice, you’re probably waiting to invest with a bit of your savings.
In this article, we would like to share with you some of our suggestions which you might want to consider investing in.
Before we carry on to determine which are the possible companies or industries that will do well this year, it is always good to take a look at Singapore’s demographics of as well as the government policies implemented here.
Singapore’s ageing population
Singapore’s ageing population is no secret. With ageing population, comes the increasing demand for medical healthcare. Coupled with the recent Pioneer Generation Package which makes healthcare more affordable to the older generation, maybe it is time we take a look at healthcare related stocks such as Raffles Medical Group where the net income has been positive for the past 5 years and doing exceptionally well over the recent 2 years.
Singapore’s market structure
Being physically small in size with a relatively small market, it is unavoidable that in some industries, we have firms which demonstrate similar monopolistic characteristics in the market.
These firms can usually exist in the market with high barriers to entry such as high start up costs, and anyone with a little economics background will know that a monopoly firm is profitable, despite being unhealthy for the economy.
An example of such would be the telecommunications sector and we urge you to ride on their profitability instead of feeling sour about their monopolistic-like behaviour.
Singapore as a financial hub
The rising need for wealth management around the world with Singapore in the challenge as one of the world’s largest wealth management centres among the likes of Switzerland, we are living in a financial hub for sure.
And since we are placing our savings in the banks anyway, why not “ save” in a different form by buying stocks of the banks? Last time we checked, those did yield higher returns than the saving accounts.
One may wish to fill his/her portfolio with penny stocks full of speculation and glittering hope but as much as we may admire his/her appetite for risk, we would rather make use of the lot downsizing and park our money somewhere where we can see the true value of it.