Dear tsksg,
STI was actually range-bound (2600-3200) in the last 3.5 years, rebounded sharply to 2681 on 3/8/09 from its bottom on 9/3/09 (STI 1457).
I was very fortunate to have stayed fully invested since 4/6/12 (STI 2698), picking 6 winners, namely Suntec, MLT, A Reit, StarHub, S.Post,SPH and making hefty capital gains and dividends.
They offer an average yield 6% p.a.(at time of purchase) > 400 b.p. above SGS 10 year bond. I have bought >$4m of them and have reaped enormous capital gains since.
My current Portfolio:- Property 50%, Shares 40%, Bonds n Cash 10%.
The following statistics speak volumes about the performance of these 6 stocks relative to Cosco, Cap Land, UOB, they have out-performed STI by a wide margin
in the past 3.5 months.
Date 2/1/13 --> 11/4/13
STI 3202 --> 3308 (3.3%)
A Reit 2.40 --> 2.70 (12.5%)
Suntec 1.695 --> 1.895 (11.8%)
SPost 1.145 --> 1.26 (10% )
MLT 1.15 --> 1.31 (13.9%)
StarHub 3.85 --> 4.43 (15%)
SPH 4.05 --> 4.65 (14.8%)
Cap Land 3.76 --> 3.54 (-6%)
Cosco 0.945 --> 0.895(-5.3%)
UOB 19.92 --> 20.68(3.8%)
Please note that Gold Price < $1600, and U.S 10 year Bond Yield is 1.8% and U.S Unemployment >7.6%.
With Japan now joining U.S. in monetary loosening, ie QE, I expect the bull run to continue in the next 6 months. STI could hit 3600 before end of this year.
You may wish to read my previous article
ISAAC CHIN: "2011 was my most difficult year in investing"
www.nextinsight.net/index.php/story-arch...y-happenings-in-2011