It may be probably good to do a stock check on STI ETF 2018 performance now. The growth of STI ETF is somehow limited by a resistance level of 3600 as per indicated in the below STI chart as of 15 April 2018. We need to careful in balancing our investment portfolio now especially the current market condition and geo-political landscape do not look stable and optimistic. If we take a closer look at the support level of STI, it was around at a level of 2539 on 7 Feb 2016. During that time, STI was under stress with the devaluation of Yuan and the interest hike pressure from Federal Reserve.
Limited Upside of STI ETF 2018
While I try to be optimistic, the probability of STI ETF being dragged down in later part of 2018 can be high. Any of the below reasons may suggest why STI ETF 2018 may have limited upside to break the resistance level of 3600:
- Potential trade war between US-China, i.e. between No 1. and No.2 world top economy after US Steel Tariff
- Next potential trade war between US-Japan, i.e. between No 1. and No.3 world top economy after post US TPP withdrawal
- War breakout between US-Syria or US-Russia or US-Russia/Iran or US/France/UK-Russia
- De-Nuclearisation call off by North Korea after US-North Korea talk in May 2018
- Global Bank Regulation of Bitcoin / Crypto-Currency
On the other hand, is there any significant positive market news which we can look forward too? I can’t think of any at the present moment. The current market may probably still hovering around the resistance level. And, it may start to drop sharply if any of the above possible reasons become a reality.
Limited Growth of Nikko AM Singapore STI ETF 2018
Refer to the below Nikko AM Singapore STI ETF 2018 chart over a period of 5 years. You can also co-relate the capital growth of STI investing is now tipping at $13,500 for every $10,000 investment. This is interesting to know that this 5 year historical STI ETF chart is still showing an uptrend direction.
My take in STI ETF 2018
As I mentioned in my earlier article related to STI ETF performance, I still prefer to invest STI ETF with a lump sum amount at one time rather than on a monthly basis via a regular saving cum investment plan. It is just my personal preference to invest STI ETF at a right time to make my money work harder. When STI ETF reaches its peak, it limits our margin of safety. Should we still continue to invest on STI ETF? Or to invest selectively on any of the 30 SGX stocks which constitute this STI?
I would like to stress that there is actually nothing wrong with a regular STI ETF investment because I still believe the long term growth prospect of STI.
As what Value Investor Guru, Charlie Munger had said before, The Big Money is not in the buying and the selling. But in the waiting.