Investing CPF monies in Singapore stock market is bad

The proposal by the SBF for the two govt funds to invest in the local stock market to revive it before it goes into comatose is a good idea to some and bad to others. There is a debate going on with two sides offering differing views. I am of the view that investing CPF monies in the local market is bad for several reasons, some of my reasons are the same as those mentioned and I have a few to add.

Investing in the moribund stock market is a big risk. Don’t forget the foreign big funds have their super computers plugged into the SGX system and to trade against everyone. If Temasek and GIC were to put more money in the local market, would they also lose their pants like the other investors?

What I think many people did not know or could not see, but not Temasek and GIC, is that they are managed by very expert people and they should know better where to put the people’s life savings. They must have reckoned that investing in the local stock market is more dangerous than investing in foreign countries, including hazy dazy and funny 3rd World stock markets. Of course the returns are higher as well in these funny countries and their stock markets. Not sure about the risk element. But after considering the two, it must be worth it and safer to invest anywhere else than in the local market.

This principle is the same like investing in foreign students, giving billions of dollars as scholarship to foreigners instead of to Singaporeans. Foreigners are the best. Foreign talents are the best including replacing our locals in jobs, top jobs. This is a very consistent policy. Foreign degrees from God knows where are better than our world class university degrees.

So, in the same line of thinking, any foreign company or stock market must be safer than our local stock market. Our stocks, degrees, our everything, is overhyped, over priced, over paid. Go overseas, everything is cheap and good. Investing in our local companies in the stock exchange therefore must be a bad idea, poor returns, higher risk and over priced. Investing in 3rd world stock markets is the best. No risk, did I hear people saying no risk in 3rd world stock markets? Or did I hear investing in American stock markets is safe? What about investing in top American and European banks, safe or not?

I have put up a very clever and solid case to invest everywhere except our stock market.  I rest my case. I also support giving more scholarships to foreigners, giving more jobs to foreign talents.

PS. Please forgive me for not knowing what I was writing. I think I must have taken something funny or I am thinking like our super talents. Did they say go with the flow?


Virgo49 said...

I had a childhood friend who started investing in shares after Lau Goh gave him the Sing & Tel shares. He had some monies from there. Everybody also got monies from there.

At age 55 after his withdrawal of all his monies from the Board roughly about 500K. He is single with no purchase of any bungalow price HDB flat.

He did not stop investing. He also started buying Units Trusts which the Service Manager persuaded him to buy more after he relinquish some. They had offers of deep fryers as gifts etc etc. I said your monies gonna be deep fried by them. What they want is the commission of your purchases.

Now he is worth only about 200K at just aged 65. Everyday, he would grumble when the coffee price increased by 10 cents. Chai Png at 2.50 is expensive for him.

He does not monitor the ongoing of his shares just simply let them lie intact. To him, as long as you do not sell, you do not lose monies. Just Paper lost.

I told him your shares at 10 bucks became 2 bucks, No Lost meh, only Paper Lost??

He said Yes Lah. I said you are like an ostrich putting your head in the sand. He got angry with me. Very soon, he has to sell his Malacca Condo and apartment and got no sanctuary to go when sinkieland goes kaput in a few years time.

These Shylocks made tons of monies keep quiet. Not market moribund, they want the Govt to release funds so that they can carry on their blood sucking activities,

Likewise the Property developers. Lift cooling measures. They made billions of dollars and still want to suck, suck.

Anonymous said...

"The proposal by the SBF for the two govt funds to invest in the local stock market to revive it before it goes into comatose is a good idea to some and bad to others."

Do you think it is better to spend our national reserves (money that belongs to Singaporeans) on free medical and hospitalization for all Singaporeans?
- how can Singapore be strong when Singaporeans are not healthy?
- is it better to invest in our own health instead?

Is it better to spend Singaporeans' money on Singaporeans' health?
Is it better to allow allow people (seemingly without transparency and accountability in the investment process) to invest our national reserves money in the stock market?

Anonymous said...

Is CapitaLEEism nearing its lifespan?

Anonymous said...

Of course investing in SGX aka Local Stocks is stupid.

Didn't Rb says or predicts that Singapore Stock Exchange is going

Who is so stupid to invest in a moribund
commercial house?

b said...

Politicians are the enemy of their own people. More often than ever, they slept with corporations to milk their own people.

Anonymous said...

Let's legalize guns in Singapore
- it's time Singaporeans arm ourselves against violence from Alien talents that PAP has allowed into Singapore


European Gun Sales Soar On Refugee Fears As "Racist Vikings" Prowl Finland's Streets


Anonymous said...



Legalize guns in Singapore.
It's time Singaporeans protected ourselves from violence committed by Alien talents.

Ⓜatilah $ingapura⚠️ said...

You can't blame the SBF for suggesting this. Anyway, there are some merits to their proposal, but also some risk.

"Risk", to your over-paid Head Kiasu in govt, is a reflection of the the same mindset of the average KIASU Singaporean Sheeple---because the sheeple get the govt. they deserve, which is made up of the same sheeple, selected for their supposed "excellence" in the field of management of national resources, and governance of the nation's citizens and their activities. i.e. Govt and Sheeple ===>>> sama sama.

So of course the idea of using the CPF as casino-chips is unpopular with those who still believe the private sector is not to be trusted, but the govt. can always be trusted.

CPF is for all intents and purposes SUNKEN MONEY. You may as well use it to buy shares. At least you get a chance to earn from what you've already lost.

Got risk aversion?