It’s at all times tempting to react to the market volatility, stated Mr Hugh Chung, chief funding officer at Endowus. Some buyers promote danger belongings, whereas others keep away from getting into the market to attend for issues to stabilise.
“It’s ‘time within the markets’ that actually counts, not ‘timing’ the markets,” he stated.
Ms Christina Woon, a portfolio supervisor at Eastspring Investments Singapore, stated the market is reacting to modifications in rhetoric earlier than the precise results have had time to play out.
“Discovering conclusive inflection factors in shifting sands turns into more and more troublesome,” she stated.
A BETTER STRATEGY?
Greenback-cost averaging is an appropriate technique within the present volatility, stated Mr Menon of OCBC. That is the apply of investing a hard and fast sum of money at common intervals, no matter present market situations.
That normally includes utilizing an funding platform to purchase shares as soon as a month or as soon as 1 / 4. He stated that is the most effective strategy as a result of it takes feelings out of the image.
“You cut back danger by making certain that you’ve some dry powder ought to markets appropriate additional,” he stated.
“On the similar time, you get to take part within the present markets, which can yield good positive factors, as an alternative of holding money and being a spectator who’s sitting on the sidelines.”
Retaining your cash as money shouldn’t be an excellent technique as a result of markets might soar if tariff fears ease and the tide turns, he stated.
One other strategy to mitigate volatility is to personal shares that pay common dividends, Eastspring’s Ms Woon stated. The corporate beforehand wrote in regards to the sturdy funding case for a dividend-focused strategy to Asian equities.
“That thesis stays very a lot intact, if not stronger, following the US tariff bulletins,” the be aware stated, including that many Asian corporations have a home focus and are barely insulated from the tariffs.
