It’s at all times tempting to react to the market volatility, mentioned Mr Hugh Chung, chief funding officer at Endowus. Some traders promote threat belongings, whereas others keep away from coming into the market to attend for issues to stabilise.
“It’s ‘time within the markets’ that basically counts, not ‘timing’ the markets,” he mentioned.
Ms Christina Woon, a portfolio supervisor at Eastspring Investments Singapore, mentioned 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 tough,” she mentioned.
A BETTER STRATEGY?
Greenback-cost averaging is an acceptable technique within the present volatility, mentioned Mr Menon of OCBC. That is the observe of investing a hard and fast amount of cash at common intervals, no matter present market situations.
That normally entails utilizing an funding platform to purchase shares as soon as a month or as soon as 1 / 4. He mentioned that is the most effective strategy as a result of it takes feelings out of the image.
“You scale back threat by guaranteeing that you’ve got some dry powder ought to markets appropriate additional,” he mentioned.
“On the identical time, you get to take part within the present markets, which can yield good positive aspects, as an alternative of holding money and being a spectator who’s sitting on the sidelines.”
Preserving your cash as money will not be an excellent technique as a result of markets may soar if tariff fears ease and the tide turns, he mentioned.
One other approach to mitigate volatility is to personal shares that pay common dividends, Eastspring’s Ms Woon mentioned. The corporate beforehand wrote concerning the robust 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 notice mentioned, including that many Asian corporations have a home focus and are barely insulated from the tariffs.
