HYFLUX, NOBLE, PENNY STOCKS SAGA, WHAT’S NEXT FOR SINGAPORE STOCKS?

Dear readers, recently, the news of Hyflux, the Penny stocks saga of Year 2013 have been making the headline news. I would not elaborate more about the details of these episodes but there are two important lessons as a summary arising from these episodes (and not including past episodes like Noble Group stock and where former blue-chip stocks were taken private or delisted at much lesser prices than those of their hey-days):
1) Hard-earned monies of investors were lost

2) Reputation of Singapore stocks markets and stocks may have taken a hit

Personally, I regret the falling or underperformance of Singapore’s listed companies here as it means investors’ monies would be lost. But this is an inevitable fact of investing. With investing, returns come with risks. And not all risks could be avoided or mitigated by investing in so-called blue-chip stocks, becoming a very good technical and fundamental analyst. Since the very fact is that there is always the unknown “unknown” which will be known only when the stock price of stocks with no good fundamentals head south!

However, if seen on a larger perspective, I believe that Singapore stocks as a whole are a fairly resilient one and defensive one, and that is why I am an advocate of forming a core with STI of our country which is considered stable and which we are more familiar.

With online trading, any investor can invest in any listed international stock outside of Singapore’s stocks market, and benefit from the myriad of opportunities there. And which is why some of my portfolio goes towards being multi-bagged by selective international stock plays. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.