Balancing exposure across regions and sectors will help investors capture opportunities wherever they emerge
SINGAPORE equities are enjoying a resurgence this year. Market reforms, improving trading activity and growing investor interest have helped put the spotlight back on the local bourse.
This renewed optimism is encouraging. It also serves as a timely reminder of this important investment principle: Diversification is still key since investing across markets and sectors can help reduce dependence on any single economy, policy environment and narrow set of sectors or group of companies.
As attention turns to the domestic market, global diversification can easily become an afterthought. Singapore’s market remains weighted in a handful of sectors, particularly financials, real estate and transportation.