Straits Times Index #STI is Asia’s WORST equity performer. Many are advocating to stay away from STI. It’s recent performance in the last 5years has been horrific at -10%. If the investor chose to invest into NASDAQ for the last 5years, the difference in return is huge!
I’d use the CAPM Model to share my point of view. Technology and some of US top names have seen a recent performance strong performance and with low volatility. This gives an illusion of low risk.
Contrarian investing is to avoid sticking with the crowd. STI is made up of cyclical equities like REITs, developers and about 39% in BANKS. And banking is a very regulated sector. It is not going anywhere. Hear my conclusions… =)
BONUS: Video tutorial on DBS shares https://youtu.be/rx-yevSYV3E