Why I choose to invest in the US/ HK market

Why I choose to invest in the US/ HK market 

My investment journey began when I was investing in Singapore REITS and shares when I was in the Army. I was obsessed with the SG market and knew it was a good market if one is primarily in search of dividends because dividends are not taxed for Singaporeans and it felt good if I had extra pocket money (on top of capital gains) going into my bank account every few months.

When I began work after attending University, I read up avidly on investment methodologies by many Singaporean financial bloggers and they advocated Dollar Cost Averaging into STI ETF. Without doing much due diligence, I signed up for the POSB Invest-Saver to do regular deductions of my salary into STI ETF. This was a substantial amount of my salary every month, hence I did not have much cash to look elsewhere to other markets. Only when my annual bonus came in when I could look to invest it.

Long story short, I realized that the US/ HK market was better for me because

1. There are more global companies in the US/ HK

This goes without saying, by investing in US companies, you will definitely have a huge range of global companies to invest in such as Semiconductors( AMD,  Nvidia, Micron),  consumer brands( Starbucks, Coke), Pharma (Abbvie, Amgen, Pfizer etc).

There are simply not many global companies listed in Singapore, many of the companies here are mainly catered to the local market, with limited room for growth.

By opening my investment horizon to international markets, I am able to invest in big companies that are riding on trends for the next decade (like electric vehicles, ecommerce, fintech). These are trends that we as investors need to ride on, and I think it would be a real shame if we do not participate in them. 

2. I have a longer time horizon given my age

With my age at 30 years old only, I have a longer investment horizon to be able to tolerate any corrections and crashes. The market does not go up in a straight line only, I acknowledge and am fully aware of that. But if you have a longer time horizon, the market will reward you over time. 

3. 'Stability' of SG companies

I have many friends who prefer to invest in Singapore shares because they are 'supposedly' more stable and allows them to sleep well at night. However, during the covid-19 crash last year in March, all the stocks crashed, even the more 'stable' stocks. I felt the pain first hand when I woke up in Mar20 to see my portfolio in deep red, even for the most stable REITS which I owned. I still have nightmares of the fateful day. 

4. Chances of finding a multi-bagger in US/HK market

With exception of penny stocks in Singapore, it's really quite hard to find SG stocks that will double over time (with exception of iFAST among others). 

In the US market however, if you select a company that is growing fast (with good fundamentals), the chances of having a multi-bagger is very much higher.

Stay tuned for the next few blogposts as I will share more about what are my experiences, my highest conviction stocks etc.

Meanwhile, if you have not yet signed up with Moomoo or Tiger Broker, please use my referral link to sign up for them, There are free gifts upon signing up, and you can easily cash out when you get the gifts, I tried them out and I managed to cash out with no issues, meaning its essentially free money with creation of account+ transfer in of cash and then selling the share and transferring out money. 






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