How to Start Investing at Market Highs

If you’d told someone what happened last year, there’s no way they’d expect stocks to rally so much –Singapore banks, REITs and the U.S. market.

New market highs can be scary for people who want to get started. 

A few months back, I’ve just received a great email from a new reader — Mark.

And I want to share it with you.

Mark’s fear is the “right fear” to have right now.

And he’s worried about buying stocks at this point, after the US market, Singapore banks and even REITs have run up so much.

In fact, many of these stocks are sitting near record highs. 

To sum it up, he says: “The market has gone up so much already, how to buy?”

You see, Mark told me he’s new to investing.

But here’s the thing, you’re not alone in your worries. 

And I’m sure thousands of people are thinking the same as you are right now. 

My answers on how to start out buying now, especially at record highs is this.

1. You’ll always find “excuses” not to invest. The hard part is overcoming these excuses

Having the right mindset is important before anything else.

There’s always a reason not to invest. 

And it’s easy to sit on the side as spectators.

But it’s much harder to take a bet, hold your head high, set your fears aside and put your money to work.

You can always come up with an excuse to NOT put your money to work.

Anyway, no one will blame you for not investing. 

Meanwhile, you won’t make any money at all.

And I’ll tell you the truth here, you’ll never reach your goal of becoming a good investor unless you know this concept.

2. Don’t worry about how much stocks have gone up… Worry about how much your money is making you

Stocks go up and down all the time. 

With our Singapore fixed deposits, they pay you almost nothing these days.

And your bank savings account pays you even less.

So, stocks with little capital upfront are still the best “bang for your buck” asset class compared with all other financial instruments.

If you’re worried about buying stocks now, go back to No.1 on this list.

And most importantly…

3. Be willing to look beyond Singapore stocks 

You’ll find better value across many markets outside Singapore today.

I think being fully diversified across regions and sectors is the way to go.

Sure, you feel safe investing in Singapore banks and REITs, since we’re familiar with the stocks. 

But these stocks aren’t immune to downside risks.

Think about last year during Covid-19 and even the global financial crisis. 

Many of the banks and REIT stocks fell a lot during these periods. 

I started out investing in US stocks and then in Hong Kong stocks, simply because there’s better stocks to choose from. And the gains are bigger. 

And if I don’t find value in one place, I move on to the next. 

So, if you’re starting out investing at market highs, or already have been investing for awhile now, I would get myself more equipped with the latest market trends and what to exactly look out for in the next 10 years…

Here’s What to Invest in the Next 10 Years

ShareInvestor is back organizing their flagship event, INVEST Fair 2021 happening on 21 -22 Aug 2021.

And ShareInvestor has invited a team of industry experts and speakers to share their knowledge and insights of the hottest topics. 

Also the latest investment trends they are seeing.