As an expat investor living in Singapore, you must be wondering whether these markets will ever stabilise or should you just pull out and protect your assets by doing so? Business investment commitments in Singapore dropped as much as 31% in 2021. This was expected as an aftermath of the COVID-19 pandemic and the uncertainty that came with it.
The situation stood true not only for Singapore but even global investments started to slow down. This actually started happening even before the pandemic hit us in 2020. All major three types of investments i.e Private Equity investments (PE), Corporate M&A, and greenfield foreign direct investments (FDI) saw a 2% of growth annually only.
In these volatile times, investors are generally vary of expanding their investment portfolios and even looking to pull out from their investments. However, according to experts, it’s really not a good idea to do so. The way to navigate this volatile and uncertain market is to steady on and invest in stable companies with stable growth patterns and steady income.
Growing Tech Companies - The Solution to Unstable Markets Worldwide
So, in these uncertain times, what should you invest in? If we look at the stats, they tell us that the tech sector is currently dominating the equity markets with Google, Microsoft, Amazon and Apple being the giants they are. These trends will only strengthen as the megatrend of digital transformation takes further hold.
Here are a few reasons why investing in stable tech companies is a better idea than pulling oit of your investments at the moment:
Digital Transformations On The Rise
The pandemic made one thing very clear - the world wasn’t ready for it and the shift it brought in the way people work and operate has been tremendous. Companies realised how badly they needed remote work and digitization practices in place to survive.
This became the very reason why several companies had to shut down because they weren’t used to working and operating offsite.
Digitisation is only going to increase as organisations adopt leaner methods and rely more on tech to execute their mundane work. Sectors such as cybersecurity, automation, AI and machine learning, SaaS and etc are only going to see more growth.
Outlook For The Sector Is Bright
According to Ernst & Young the way people live will and has changed significantly after the pandemic as people become more tech savvy and rely on technology such as interconnected devices, home security, health and food tech etc.
This change in lifestyle will only fuel the growth of the tech sector in the market and make it an even more stable sector to invest in. Companies and brands will also move towards investing more in digital tech to stay relevant.
AllianceBernstein - Research Driven Advice For Clients In Singapore & Beyond
In these volatile times, it is so important that you rely on proper research and professional advice when it comes to investing your hard-earned money and managing your investment portfolio the right way.
AllianceBernstein is one such global investment management and research firm that keeps a keen eye on these global trends with offices across the globe and offers their client sound advice based on real numbers and trends.
AB focuses on stability, quality, and price as three main factors when determining which companies their clients should invest in. They look for companies that have a stable performance and offer reasonable pricing. In a volatile post COVID-19 market, AB too, suggests investing in the resilient tech sector.
Pulling your investments out or lightening your investment portfolio may seem like a good idea but it will only harm you in the long run. The key is to determine which companies have a stable growth pattern and then diversify your portfolio with such investments.
For more information, visit www.abfunds.com.sg
