TIPS FOR NEW STOCK MARKET INVESTORS:

Investing in the singapore stock market  is one of the fastest ways to grow your wealth when compared to growing wealth in a savings account with small monthly increments. Relying on the advice of friends and family isn’t the best way to get started investing in stocks for beginners because everyone’s financial situation and investing risk limit is different. Relying on investing experts and expert resources can give you some peace of mind when you’re making knowledgeable investment decisions that can potentially grow your money.
The three most important points that are crucial for success in the world of stock investments.

Look stocks as businesses:

Behind every stock is a business. There are more than 700 stocks to invest in the Singapore stock market.we should not handle stocks like pieces of paper to be bought and sold randomly.

Warren Buffett, one of the world’s most renowned investors, once said:
“Buy a stock the way you would buy a house. Understand and like it such that you’d be satisfied to own it in the absence of any market.”

which means that we should know a company inside out very well before investing any money into it. For example, before we buy any electrical devices we would do thorough research on it by checking reviews on the internet, comparing different products and the price, before parting with our cash.  
The same concerns with the businesses. Before we buy any stock, we should research the underlying business thoroughly, such as its financial statements, its competitive advantages, and its management. We also want to ensure that the valuation of the company is not expensive.

Don’t be duped by high dividend yield:

The dividend yield of a company gives you an idea of how much dividends you are getting for the stock price that you are paying. So check the company’s financial position before buying such dividend payers.

For example, if Company X’s dividend per share is S$1 and its stock price is S$10, the dividend yield of Company X is 10% ((S$1/S$10)*100%). However, this dividend yield in itself does not tell us if the dividend is sustainable. Another firm, Company Z, with a dividend yield of 5%, may offer more stable dividends than Company X.
So, never buy any stock based on high dividend yields.

Keep checking your emotions:

This means What is needed from the investor is patience and discipline, without getting fear anyway. When it comes to investing, we should have a long-term view, and invest more in stable businesses whenever the stock market throws an outburst.

From 1993 to 2017, there were a total of 6,411 trading days where some companies have more than doubled (excluding dividends). In that period, there were 870 days when the index lost 1% or more, 242 days with a drop of more than 2%, and 90 days when the daily decline went past 3%. This shows that over the 24-year period, the stock market managed to generate wealth for investors. 

THE POWER OF PARADOX: HOW WE GAIN AND LOOSE INFLUENCE

A paradox is a statement that contains conflicting ideas or that seems contradictory.  In other words, they are propositions that show credible but, in fact, they are illogical. That is because it contains two facts that are opposed to each other and can't exist at the same time. The two things can’t happen at the same time is termed as paradoxical.

The similar situation is arising from the White House’s plan to cut its trade debt by forcing trade tariffs on the rest of the world. Think about what occurs when America buys $100 worth of goods from China. It pays for the purchases in US dollars. If China then buys $100 worth of American goods, then no trade deficit. The latest Singapore Stock Blogs are here.

Meanwhile, it also wants to be the reserve currency of the world. But it also means that China would have nothing in reserve. So, it buys less than $100 worth of goods from America and keeps the balance in US Treasuries or it allows the back-balance to America.

The conclusion is that if America wants to be the world’s reserve currency, which it does, then it must run some sort of a trade deficit with not only China but also with the rest of the world. That is the price it must pay for being the world’s reserve currency.

         The value of the US dollar is likely to be artificially boosted which will make us less competitive in terms of US goods and services and could turn, increase in its trade deficit. Who would want to buy American-made vehicles, when Japanese vehicles are cheaper?

The problem with America’s trade deficit is contrary. It can influence China and other countries to buy more goods to narrow the trade deficit but then the US dollar would no longer be the reserve currency of the world. Thankfully, that is not going to happen. So, America is attached to a problem that even trade tariffs won’t solve. You can go through with Singapore Stock Market News.

A BRIEF INITIATION OF RECENT TARDE WAR:

2018 China-United States trade war refers to tariffs and counter-tariffs between the U.S. and China. On 6 July 2018 U.S. President Donald Trump imposed tariffs putting a 25 percent border tax on $34 billion worth of the total China exports to the United States. Which then affected China to respond with similarly sized tariffs on U.S. products.

However, the list was cut down to 818 product categories worth US$32 billion in exports. The second tranche of 284 goods, valued at US$16 billion, bringing the total closer to US$50 billion, will be targeted after an additional process of review. Beijing would hit back with tariffs on nearly US$30 billion in US goods. To get more knowledge about Stocks Market News Today.

Former Malaysian Prime Minister, Najib Razak, was arrested on Tuesday. He was taken to the Malaysian Anti-Corruption Commission (MACC) headquarters in Putrajaya. MACC’s investigation is focused on how RM42 million (US$10.6 million) went from SRC International into his bank account. SRC International was created in 2011 by Najib’s government to pursue overseas investments in energy resources.

1MDB, founded by Najib in 2009, is currently being investigated in at least six countries which for claimed money fraud and laundering. Civil actions filed by the US Department of Justice mention that nearly US$4.5 billion from 1MDB had been cleaned. Furthermore, on Monday, the 1MDB special task force, that was set up for this case, announced that more than 400 bank accounts involving RM1.1 billion of funds from individuals, political parties and other non-government organizations were frozen. Get free Stocks Picks here.

A new S$80 million passenger terminal will open at Seletar Airport in December this year. This will provide additional free space for Singapore’s private and business jet traffic, at Changi Airport. The new facility is six times bigger than the current terminal and is designed to handle up to 700,000 passengers a year. The departure area will have four check-in counters, six entrance ways, two security screening stations and one gate hold room with a 200-passenger capacity.

Monetary Authority of Singapore chief, Ravi Menon, said that GDP in Singapore is expected to grow by 2.5 to 3.5% in 2018, unchanged from an earlier official forecast released in May. A two-sided trade war between the United States and China indirectly contributes about 1.1% of Singapore’s GDP. Flows between the US and European Union add another 0.5%, while trade between the US, Canada, and Mexico contribute 0.6%.

Finally,  Singapore dollar lending stood at S$668 billion in May, 0.1% up from April. The pace of growth was slower than April’s 0.8% increase, due largely to a slower growth in business loans. Business lending crawled up 0.1% in May compared to 1.2% in April. Consumer lending in May increased 0.1% to S$265 billion, while in April, the increase was 0.3%. On a yearly basis, bank lending in May rose 5.5%.

Investors Should Decide Which Approach Is Suitable For Them: The active or The passive way.

Whenever there’s a discussion about active or passive investing, it can rather quickly turn into an excited debate because investors and wealth managers serve strongly favor, one strategy over the other. I hope this article can help investors to make a better choice between the pair.

Active Investing:   Active investing refers to an investment strategy that involves ongoing buying and selling activity by the investor. Active investors purchase investments and continuously monitor their activity to exploit profitable conditions. Active investing requires confidence that whoever’s investing the portfolio will know exactly the right time to buy or sell. 

                            Active investing requires a constant monitoring of the market, and research to select stocks. Stock investment. This also means that investors would need to spend a substantial amount of time to keep up with market developments. Active investors can also usually be grouped into three different camps, such as income investing, growth investing, and value investing. 

Here are some advantages and disadvantages of active investing ;

1. Flexibility – Active managers aren't required to follow a specific index. They can buy those "diamond in the rough" stocks they believe they've found.

2. Hedging – Active managers can also hedge their risks using various techniques such as short sales or put options, and they're able to exit specific stocks or sectors when the risks become too big. 

3. Tax management – Even though this strategy could trigger a capital gains tax, advisors can tailor tax management strategies to individual investors, such as by selling investments that are losing money to offset the taxes on the big winners. 

Disadvantages :

1. Very expensive – The average expense ratio at 1.4% for an actively managed equity fund. Very expensive because all that active buying and selling triggers transaction costs, not to mention that you're paying the salaries of the analyst team researching equity picks. 

2. Active risk – Active managers are free to buy any investment they think would bring high returns, which is great when the analysts are right but shocking when they're wrong.

Passive Investing:  Passive investing is an investment strategy that aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum. This a very cost-effective way to invest. The strategy requires a buy-and-hold mentality.   By investing in a passive manner, there’s no requirement to think about the varieties of stocks that go into our portfolios – we can buy the whole market. Share Investment

Investors may want to choose a passive approach because -they may have no time to analyze stocks due to work or family responsibilities, Or they have no interest in learning the necessary steps to invest with an active approach. 

Advantages: 

1. Ultra-low fees – There's nobody picking stocks, so failure is much less expensive.  Passive funds simply follow the index they use as their benchmark.

2. Transparency – It's always clear which assets are in an index fund.

3. Tax efficiency – Their buy-and-hold strategy doesn't typically result in a large capital gains tax for the year.

Disadvantages: 

1. Too limited – Passive funds are limited to a specific index. Thus, investors are locked into those holdings, no matter what happens in the market.

2. Small returns – By definition, passive funds will pretty much never beat the market, even during times of confusion, as their core holdings are locked in to track the market. Sometimes, a passive fund may beat the market by a little, but it will never post the big returns active managers crave unless the market itself booms. 

REACENT STOCK MARKET REPORT @ SINGAPORE

Welcome, everyone in Singapore stock market news. Here are three things about the local stock market that you might be interested in today. Singapore shares started almost low on Thursday morning (July 5), with the Straits Times Index easing 2.25 points or 0.07 percent to 3,242.64. 

1. The Straits Times Index (SGX: ^STI):  Dropped the day falling with 0.9% to 3,238.9. Out of 30 index stocks, 26 were in the red; two in green while the rest achieved unchanged. The greatest failure among the blue-chip stocks was ComfortDelGro Corporation Ltd (SGX: C52); its shares dropped 3.8% to S$2.26 apiece.

On the other hand, Only another gainer in the index was Jardine Matheson Holdings Limited (SGX: J36). The STI component that gained the most was Jardine Strategic Holdings Limited (SGX: J37), inching up 0.5% to US$36.65. 

2. Asian Healthcare Specialists Limited (SGX: 1J3):  Asian Healthcare Specialists ended the day flat at S$0.265 each and are made up of five senior and experienced orthopedic medical specialists operating at four clinics under The Orthopaedic Centre brand. They declared today that its wholly-owned subsidiary, The Orthopaedic Centre (International) Pte Ltd, has entered into an agreement with All-Star American Medical Specialists (Myanmar) Ltd to provide consultancy services to both outpatients and inpatients. 

At the Grand Hantha International Hospital in Yangon, Myanmar covers surgical services for patients. All-Star American Medical Specialists provides and manages specialist medical services at the hospital.

Together, they provide a wide range of general and sub-specialized orthopedic, trauma and sports services.

3. PropNex Limited (SGX: OYY): PropNex is an integrated real estate services group. It has four business segments, and they are real estate brokerage, training, property management, and real estate consultancy. They made its trading appearance today at S$0.685 per share investment up from its initial public offering (IPO) price of S$0.65. The real estate brokerage arm operates PropNex Realty Pte Ltd, which is Singapore’s largest real estate agency by salespeople.