This is a chart of the STI (Straits Times Index), which shows the performance of the Singapore Stock Market for the past 30 years.
It does not really need much explaining, but for the sake of new investors, understanding this chart will allow you to save a lot of time, effort and pain spent listening to analyst reports, stock tips, or hours spent keying in numbers in spreadsheets trying to find the “intrinsic value” of a stock.
The truth is, making big money in the stock market is as simple as buying low and selling high. Yup, that’s right.
Take a look at this chart. The green arrows indicate the best time and prices to buy, while the red arrows indicate the time to sell and get out. You can see that these arrows coincide nicely with the major market tops and bottoms for the past 30 years. Surely this can’t be coincidence?
This means that as a risk-averse long-term investor, all I will need to do now is wait for the STI to reach 2,000 before I decide to take action.
Also, I will continue to monitor this chart. Good luck! 😀