Singapore Stock Strategy In The Year Of Rabbit - OCBC Investment 2023-01-18: Be Hoptimistic!

• Based on the S&P 500 Index, which has a longer trading history, it is interesting to note that in the past Years of the Rabbit, which occurred in 1951, 1963, 1975, 1987, 1999 and 2011, the annual gain in those years was an average 14.7%!

Be hoptimistic!

• With the Lunar New Year around the corner, Chinese zodiac and Feng Shui talks are hugely popular as investors try to glimpse into what the Year of the Rabbit has to offer.
• - Read this at SGinvestors.io -
• So, what does this new Year of the Rabbit holds for Singapore equities?

Singapore is stable, not boring

• Singapore market’s lack of excitement versus other markets is a common view held by investors with global exposure. However, heading into a year of great uncertainty for the global market, especially in an environment of persistently elevated inflation and high interest rates, it is prudent to have some exposure to the stable Singapore market.
• - Read this at SGinvestors.io -
• Last year, the Straits Times Index (STI) ended the year with a gain of 4.1%. With a dividend yield of 4.1%, this means that the total return for the year was 8.2%! This is remarkable especially in view of the massive losses for equities and bonds globally in 2022. See also SGX market update: The Straits Times Index (STI) Led Asia Pacific & Developed Stock Benchmarks in 2022.
• Additionally, global equities saw huge fluctuations within the year. Based on the MSCI World Index, global equities shed almost 29.0% from 2022’s high to 2022’s low, before recovering with a gain of 12.4% from the 2022 low to close the year still in negative territory. In Singapore, the STI saw a narrower trading range, it shed 14% from 2022 high to 2022 low and then added 9.5% from 2022 low to close the year in positive territory.

Will earnings be cut?

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2023-01-18 SGinvestors.io

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