STI ETF

[MangoTuna65]

Actually quite a lot of ppl buying STI thru SRS.. not long ago, it was still touted as the best option for SRS.

https://www.theedgesingapore.com/capital/reits/sti-hangs-support-developers-and-reits-under-pressure

Does that mean that STI is somewhat artifically propped up by SRS inflows?

 

[yuzu28]

Does that mean that STI is somewhat artifically propped up by SRS inflows?

Actually, i feel yes. I feel basically most sgx shares are, because can rsp using srs, cpf and cash are allowed for a reits, etfs, blue chips, banks, ut... It's like a circular kind of economy (maybe i use wrong term) to sustain sti. But even with all these srs, cpf, still still not hitting 3000

 

[MangoTuna65]

Actually, i feel yes. I feel basically most sgx shares are, because can rsp using srs, cpf and cash are allowed for a reits, etfs, blue chips, banks, ut... It's like a circular kind of economy (maybe i use wrong term) to sustain sti. But even with all these srs, cpf, still still not hitting 3000

That's why. We can argue that the SPY and by therefore SNP500 is also propped up by alot of the US retirement and passive investment accounts, but look at where the SNP500 is at now.

 

[frigatex]

If I would harbour a guess, it's just down to Singaporean's mentality.

Even amongst young ppl, there are many who do not want to risk investing in stocks, not even ETFs. Up until recently, banks offer all sorts of saver plans to earn higher interest, and many I know are satisfied with that even if they have to meet the cumbersome requirements and place their deposits with various banks just to maximise the interest rates. And then there was SSB. With i/r now lowered, maybe things will change eventually?

For those who venture into stocks, there is significant outflow into foreign markets, simply because of the negative sentiments towards the outlook of STI. If the GME saga has shown anything, it is that sentiments play a equally important role, if not more important, than fundamentals. So seems like yes, the negative sentiments will lead to a self fulfilling prophecy..

 

[aiptasia]

If I would harbour a guess, it's just down to Singaporean's mentality.

Even amongst young ppl, there are many who do not want to risk investing in stocks, not even ETFs. Up until recently, banks offer all sorts of saver plans to earn higher interest, and many I know are satisfied with that even if they have to meet the cumbersome requirements and place their deposits with various banks just to maximise the interest rates. And then there was SSB. With i/r now lowered, maybe things will change eventually?

For those who venture into stocks, there is significant outflow into foreign markets, simply because of the negative sentiments towards the outlook of STI. If the GME saga has shown anything, it is that sentiments play a equally important role, if not more important, than fundamentals. So seems like yes, the negative sentiments will lead to a self fulfilling prophecy..

The Singaporean mentality is the very reason why I ceased investing in SGX stocks many years ago. You can witness this mentality in the leadership of the SGX listed companies i.e. conservative, no vision, excessively risk adverse, cronyism, nepotism, etc. That's why most if not all Singaporean companies flop big time when they step out of the protective PAP cocoon in foreign countries.

We should not forget that behind every stock there is a company and that company's leadership is what brings it forward or backward. If you wish to evaluate the potential stock performance, take a look at its leaders and you will get a lot of answers.

 

[GDnitez]

If I would harbour a guess, it's just down to Singaporean's mentality.

Even amongst young ppl, there are many who do not want to risk investing in stocks, not even ETFs. Up until recently, banks offer all sorts of saver plans to earn higher interest, and many I know are satisfied with that even if they have to meet the cumbersome requirements and place their deposits with various banks just to maximise the interest rates. And then there was SSB. With i/r now lowered, maybe things will change eventually?

For those who venture into stocks, there is significant outflow into foreign markets, simply because of the negative sentiments towards the outlook of STI. If the GME saga has shown anything, it is that sentiments play a equally important role, if not more important, than fundamentals. So seems like yes, the negative sentiments will lead to a self fulfilling prophecy..

Young people now like to "invest" in cars...

 

[MangoTuna65]

Young people now like to "invest" in cars...

Lol, -15% immediately upon purchase. But oei, I quite young, but no car hehe

The drop is faster then the drops I always get when i click buy on shares.

 

[GDnitez]

Lol, -15% immediately upon purchase. But oei, I quite young, but no car hehe

The drop is faster then the drops I always get when i click buy on shares.

Hahaha.. seen alot of my younger colleagues very eager to buy car.. just started working only want to buy liao..

 

[发哨子2020]

Cars in Singapore is not everyone here.
In edmw, you see some sour hdb say no swim /gym /jacuzzi everyday why should they buy condo?
Lol

Lol, -15% immediately upon purchase. But oei, I quite young, but no car hehe

The drop is faster then the drops I always get when i click buy on shares.

 

[aurvandil]

You can witness this mentality in the leadership of the SGX listed companies i.e. conservative, no vision, excessively risk adverse, cronyism, nepotism, etc.

In the US, the corporate culture of top companies is: What can I do to maximize shareholder value in terms of increases in the stock price?

In the SG, the corporate culture of top companies is: What is the bare minimum I must give shareholders so that they don't complain and I can keep everything else for myself, my family and my friends?

 

[aiptasia]

In the US, the corporate culture of top companies is: What can I do to maximize shareholder value in terms of increases in the stock price?

In the SG, the corporate culture of top companies is: What is the bare minimum I must give stockholders so that they don't complain and I can keep everything else for myself, my family and my friends?

In the US, CEOs of listed companies don’t surround themselves with friends and family in their offices and they are also held accountable and can be dismissed for poor performance. In Singapore, paper generals are parachuted into CEO positions despite having no relevant experience and rotate CEO and directors positions even if they tank their companies.

Would any sane investor buy shares of such crony companies run by incompetent people?

 

[aiptasia]

Young people now like to "invest" in cars...

If young Singaporeans think that a car is an investment and buying quality stocks is not, the country is doomed !

 

[aurvandil]

In the US, CEOs of listed companies don’t surround themselves with friends and family in their offices and they are also held accountable and can be dismissed for poor performance. In Singapore, paper generals are parachuted into CEO positions despite having no relevant experience and rotate CEO and directors positions even if they tank their companies.

Would any sane investor buy shares of such crony companies run by incompetent people?

In the US when there is an earnings miss or a significant drop in the share price, you see the CEO come forward, take responsibility and resign. The next CEO is then found post haste to turn the company around.

In SG, you see the same old tired incompetent faces shamelessly hang on regardless of how the company has performed. They blame "external" factors for all the problems and pocket their fat salaries. As do their family and friends which they have put into key positions.

In a real case, a SG CEO resigned after a string of bad investments. For 1 year, the company did a "determined" search. They were somehow unable to find a suitable replacement. The CEO then stepped right back into her position. Recently she has tendered her resignation again.

 

[aiptasia]

In the US when there is an earnings miss or a significant drop in the share price, you see the CEO come forward, take responsibility and resign. The next CEO is then found post haste to turn the company around.

In SG, you see the same old tired incompetent faces shamelessly hang on regardless of how the company has performed. They blame "external" factors for all the problems and pocket their fat salaries.

In a real case, a SG CEO resigned after a string of bad investments. For 1 year, the company did a "determined" search. They were somehow unable to find a suitable replacement. The CEO then stepped right back into her position. Recently she has tendered her resignation again.

In your example, I wish to highlight another major problem that dissuades me from investing in Singapore companies which is corporate governance and transparency - there are no records anywhere of what that particular CEO’s compensation is. Besides the glossy annual reports filled with skimpy wordings, an investor can hardly find anything pertaining to what a Singapore company is doing or plans to do unlike the US where even new and small IPOs like Maravai Life Sciences (which I invested in) has reams of information of what they are doing and where they are headed to.

 

[aurvandil]

In your example, I wish to highlight another major problem that dissuades me from investing in Singapore companies which is corporate governance and transparency - there are no records anywhere of what that particular CEO’s compensation is. Besides the glossy annual reports filled with skimpy wordings, an investor can hardly find anything pertaining to what a Singapore company is doing or plans to do unlike the US where even new and small IPOs like Maravai Life Sciences (which I invested in) has reams of information of what they are doing and where they are headed to.

When investors criticize this unacceptable corporate behavior, they are labelled as "haters", "noise" or "politically motivated".

Like you, I have long since washed my hands of SG companies. As the saying goes: A fish rots from the head down.

 

[little pupsky]

Conclusion: There are good reasons why the STI is known as the Super Terrible Index in some financial circles.

 

[DevilPlate]

Happy CNY!

Let go the unhappiness and move on to prosperous 2021!

Huat ar!!!

 

[dennismados]

When investors criticize this unacceptable corporate behavior, they are labelled as "haters", "noise" or "politically motivated".

Like you, I have long since washed my hands of SG companies. As the saying goes: A fish rots from the head down.

Mmmm...is US oso rotting ?

 

[DevilPlate]

Mmmm...is US oso rotting ?

Printing Trillions....

All just keep quiet....if not WW3

 

[Gaigai]

Actually quite a lot of ppl buying STI thru SRS.. not long ago, it was still touted as the best option for SRS.

https://www.theedgesingapore.com/capital/reits/sti-hangs-support-developers-and-reits-under-pressure

Not just srs. A lot of the fin blogs in 2017-2018 touted STI as the must have for DCA monthly. I also went to do it. After a poor performance for a few months; I sold and bought CLR lump sum instead for dividend play