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“Even badly timed stock market investments are better than no stock market investments at all,” says Greg Baker, Managing Director of Charles Schwab Singapore.
While investors new to the game may be tempted to wait for a perfect time to buy and sell stocks based on the latest market movements, Charles Schwab’s recent study on investing based on market timing found that the cost of waiting for the perfect moment to invest typically exceeds the benefit.
“Investors who procrastinate are likely to miss out on the stock market’s potential growth,” adds Baker. “Historically, staying invested has been, in our view, an effective strategy.”
According to a survey by Fullerton Fund Management on the investing attitudes and behaviors of 500 Singaporean investors, being proactive is increasingly becoming the favored approach, especially amidst an evolving investment landscape. In the face of increasing concerns over high living costs, high interest rates and growth uncertainty, the survey found that investors are navigating these complexities by “actively seeking knowledge as they refine their portfolio strategies” (Fullerton Fund Management, Rethinking Investing, 2024).
Indeed, adopting a proactive approach towards managing assets and staying invested has long been recognized as a key strategy of high-net-worth individuals (HNWIs) for wealth preservation and legacy planning. Additionally, by staying updated on market trends, investors–no matter their experience–can build confidence and ensure their portfolios are aligned with their personal financial goals.
“Maintaining a diverse portfolio is integral to riding out the peaks and troughs of the stock market, and for many, the U.S. stock market remains an attractive option,” Baker adds.
One reason for this is the better capitalization of the U.S. stock market. The NYSE and NASDAQ combined has a market capitalization of over US$50 trillion, making it the deepest financial market in the world. This allows investors to choose from diverse options and own shares of the largest companies in the world.
Investors can also make decisions with greater confidence, knowing that the U.S. stock market is the world’s largest and most liquid. This reduces the risk of market manipulation and increases the chances of finding a small spread and a buyer or seller of any stock at any time.
For investors looking for greater portfolio diversification, the variety of sectors and industries in the market enables investors to gain access to other asset classes, including options, futures, Exchange-Traded Funds (ETFs), bonds and more. Many highly innovative companies have also emerged in the U.S. market, a trait that often positions companies for strong growth and accelerated earnings.
SOURCE: Schwab Center for Financial Research with data provided by Morningstar, Inc.
The above chart shows what a hypothetical portfolio value would be if an investor invested $10,000 in a portfolio that tracks the Ibbotson U.S. Large Stock Index on 1/1/1948 under three different scenarios. The first two scenarios are what would occur if an investor only invested when one particular party was president. The third scenario is what would occur if an investor had stayed invested throughout the entire period. Returns include reinvestment of dividends and interest. The example is hypothetical and provided for illustrative purposes only. It is not intended to represent a specific investment product. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. Past performance is no guarantee of future results.
Recently Charles Schwab changed its Singapore business model to focus solely on an underserved segment in Singapore – accredited investors, which captures the mass affluent and HNWIs locally.
GREG BAKER, MANAGING DIRECTOR, CHARLES SCHWAB SINGAPORE
Baker adds, “We saw in Singapore that High-Net-Worth investors are sometimes stuck between wanting a sophisticated online trading platform but also a dedicated private bank style relationship service which can mean higher fees. At Charles Schwab Singapore we provide both, our focus on the High-Net-Worth investors with a dedicated relationship manager and the power of Schwab’s suite of low fee trading solutions means investors do not have to compromise in their investment decisions.”
As a rule of thumb, some features that investors should look out for in a trading platform include a wide range of assets; transparent and low pricing structure; advanced tools and features and deep research insights; ready access to professional, human support; and of course, reputation.
With over 50 years of experience as a leading brokerage in the U.S. and 36 million active brokerage accounts, Charles Schwab brings deep expertise in helping accredited investors and HNWIs navigate the U.S. market.
Singapore investors can gain access to the U.S. markets by opening a brokerage account through Charles Schwab Singapore and meeting the accredited investor requirements set by the Monetary Authority of Singapore.
Once set up, they can gain immediate access to a wealth of tools, insights, and support from a dedicated team.
Schwab Trading Powered by Ameritrade™ combines the award-winning thinkorswim® trading platforms with extensive trading education and specialized service, so that traders of all types and levels of expertise are guided at every step of their personal investment journey. This is supplemented by Charles Schwab’s vast library of educational content including news, expert commentary, courses, and research.
Charles Schwab’s award-winning thinkorswim® platform suite
Investors who like to react to after-hours market developments will appreciate Charles Schwab’s extended trading hours before and after regular U.S. market hours, and its 24/5 trading of select securities exclusively on thinkorswim platforms.
Of course, for investors seeking professional guidance, Charles Schwab also has a dedicated team of local and U.S.-based registered investment professionals, who are on standby 24 hours during the market week – from Monday 1.00am (US EST) through Saturday, 1.00am – to provide support on platform, product, and trading strategy needs.
The icing on the cake: US$0 per trade for all online-listed U.S. stocks and ETFs trade commissions with no hidden fees like platform or custody charges. This sets Charles Schwab apart from other similar trading platforms.
“In a climate made uncertain by ongoing geopolitical tensions and technological disruption, it is now more critical than ever for those looking to preserve and grow their wealth to take charge of their financial portfolios, so that they can weather any market volatility,” Baker says.
“And Charles Schwab Singapore can be the trusted partner to help them do just that,” Baker concludes.
Find out more about Charles Schwab Singapore and its offerings at www.schwab.com.sg
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