Tuesday, September 1, 2009

US market vs S'pore market

In Singapore, with the help of various brokerages, we are able accessing to various countries market. Generally, US market and Singapore market are the most investors and traders here going for. For me, I would prefer to invest/trade in US market over the Singapore market.

Below are some points explaining my preference:
  • US is currently still the dominated financial market in the world, with huge transactions volume going on everyday. To investor/trader, it means that you can easily buy/sell your share easily.
  • As the dominated financial market, everyone in the world is watching the market. Hence, you can easily find the latest information, analyst's reports and comments on the Internet.
  • Besides equities market, there are also other financial vehicles, eg. bond, futures, options to diversify your investment or hedge against your losses.
  • Unlike Singapore market where shares are selling in lots (1000 shares), shares in US market are selling in single share, which means that if the current price of Share A is US$75, you only need to pay this amount plus the transaction fees to own this share. So, to a investor who just starting to invest, you are not necessary to have few 10k to own a quality share in US market.
  • Lastly, as US stock market only starts at the night time of Singapore, observing the US stock market will not affect my work in the day time. Unlike those trading in Singapore market, they tend to keep observing the Singapore stock market while working.
However, one of the major risk of investing/trading US market is the currency risk.

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