Creating CPF Buffer
So far, 2013 has been good for me. I have sold off all my stocks, except for my CPF Investment Acount, which has risen by 15%. I opened this account and invested a portion of my CPF Ordinary Account before buying my first HDB flat. For the uninitiated, it is HDB's policy to use up all your CPF monies in Ordinary Account if you intended to purchase a HDB flat. So if you intend to set aside a portion of monies in your Ordinary Account for emergency purposes, the only way is to open a CPF Investment Account and then liquidated your investments after the HDB purchase is completed.
Bull or Bear?
I have always advocated to invest during crises. But the way I see it, 2013 could be the start of the economic recovery for most developed countries. Since 2010, the market has weathered U.S' fiscal cliff, Europe's debt issues and China's slowing economy. So far, the market's performance has been pretty resilient against all these negative developments and investors' confidence remain high on equities. I don't think any further bad news with regards to these issues will have further impact on the stock market. After all, investors would have factored these developments already. So I would say it's going to be a bull cycle for the stock market this year, and probably we would not witness the kind of volatility of yesteryears. Of course I am not an economist, and the above predictions are just my personal views. Investors should exercise due diligence before making any form of investments.
I do not plan to invest in any SGX stocks or REITS this year. Simply because I don't see value in any of these counters. Instead, I plan to do index investing (ETF) and is in the midst of educating myself on it. I hope to share with my readers on what I have learnt in the coming months.