The Straits Times Index (SGX: ^STI) rallied this week but there might be tougher times in the horizon.
Singapore Prime Minister Lee Hsien Loong said that the current COVID-19 virus has already made a larger impact compared to the 2003 SARS virus.
He added that the economy will definitely take a hit — and that a recession is possible.
A reduction in economic activity will likely have a broad impact on Singapore companies. Typically, when that happens, stock prices will fall. Hard.
But we should not fear downturns, should it happen.
Stock market declines are opportunities. Lower stock prices are a gift to patient investors.
All we have to do is to remain focused on the things that matter: the business, the financial resilience and the management teams that will make the right moves to weather the storm.
We don’t know if a market crash will happen. And we are not in the business of predicting one.
As Warren Buffett once said, “predicting rain doesn’t count, building an ark does”.
Fear is in the air. But so is love.
Between the two, we prefer the latter. Royston Yang shares his love affair with a familiar Singapore stock and why he is happy to own shares of it.
If the SARS episode is any indication, Singapore Airlines (SGX: C6L) could be severely impacted by the current COVID-19 virus.
Chin Hui Leong takes a look back in time for clues on what could happen next.
Singapore Exchange (SGX: S68) or SGX has given the listed companies the option report semi-annually instead of quarterly. But not every company gets that option.
We explain the details behind SGX’s move.
Please refer to the individual articles for stock ownership disclosures.