Singapore GDP shrinks 4.8%, cuts 2008 growth view

HONG KONG (MarketWatch) — The Singapore government said Thursday that its economy shrank 4.8% during the October-December period from the previous quarter while the island nation’s inflation continued to grow on cost increases in health care, housing and food costs”

This is not a surprise to me. Back in last year i already tell my friend that Singapore economy will not be as good as previous year. Singapore might be affected by the ongoing credit issue, sub prime and possibilities of recession in US. Sadly many of my friends just brush off my idea. Singaporean young adult are mostly ignorant about the world economy. We always think that Singapore economy will continue to grow at a tremendous rate.

I still remember some of my friend use their CPF money to invest in Singapore Fund and China Fund. I remember telling them that the market will be coming down soon as the world economy will get affected by the US problems. Then most of my friend say, “Don’t worry Brother, Asia is growing fast, China fund is good as Olympics is coming and Singapore will be boost by the IR industry”. The fact that they didn’t know is that the market will react faster than the economy. The market react to the news. Just less than 6 months ago, Singapore Index hit a high of 3k ++, now within just a few months, Singapore index is only at 2k+. Most of the Asia market suffered averagely 20% of the high. If my friends hight my advice to wait till the economy is good then you invest, they will be a lot happier now.

Invest for long term ( 10 years ) fund/index/Unitrust sure make money.

The above sentence is only half true. Invest long term in your own country index is almost sure to make money but not fund and other products. To invest at a peak of the market will take a even long time to make money. Market and Economy always goes in a cycle. What go up have to eventually come down.

This is the best period of time to save money for the next upcoming bull run which might happen in 2 years time. Always wait till the overall economy is good then you enter the market. Read the world news everyday to keep yourself update with the economy. Invest in yourself and you will reap the rewards.

Please Wake Up Singaporean … Especially the young adults … You might find it hard to get a job for the rest of this year till next year … especially if you want to work in a banking industry. Learn to manage your CPF fund properly. Do not think that you can’t use the money now so you just mismanage it and dump it at a lousy fund or stocks. Always do your due-diligence and do your own finance. Do not be sway by the so-called professional financial planner.

Tips

Invest something that will 100% guarantee to grow your capital. Always ask the Professionals to guarantee your investment capital. If they cant means their products is not really that good. If they cant promise you a good return of 5% guarantee annually, you might as well park your money at CPF special account which give you a good rate or even at ordinary account also not bad.

Important thing is always invest in yourself …