3 Tips to Double Your Portfolio in 2022

May 10, 2021

Is your investing journey limited to your home country? Would you be keen to invest in other markets that are doing well?

As COVID-19 continues to rage on, you will most probably be unable to travel for some time.

Instead of globetrotting, have you ever thought of letting your portfolio ‘travel’ the globe on your behalf?

Here are three reasons why you should consider growing your portfolio through overseas investments.


Reason 1: Global Opportunities

Figure 1: Adapted from Interbrand, Best Global Brands 2020

Wall Street legend Peter Lynch has a very basic investment tenet, “Buy what you understand.”

Mr Lynch believes that individual investors have an advantage over Wall Street as they have the benefit of first-hand observations.

While you are cooped up at home, have a look around you. Observe the appliances and products that you use every day. If something attracts you as a consumer, why can’t it pique your interest as an investor?

Fun fact: Many of Mr Lynch’s investment ideas came to him when he was walking through the grocery store or chatting with friends and family.

Take for example an electronic device which many of us cannot live without: the smartphone. Many of us depend on our iPhone (AAPL-US) or XiaoMi (1810-HK) to surf Facebook (FB-US) for news and updates.

When we crave entertainment, we use our smartphones to catch up on the latest k-dramas and blockbusters through Netflix (NFLX-US) and Disney+ (DIS-US).

During the lockdown, many of us passed time by playing video games on Tencent Holdings (0700-HK).

While working from home, we could be using computers from Lenovo (0992-HK) and Hewlett Packard (HPE-US). The majority of us also had to buy things online on Shopee (SE-US), Lazada (BABA-US) or Amazon (AMZN-US). To make electronic payments, we use Visa (V-US) or MasterCard (MA-US).

Whether we realise it or not, we are constantly interacting with these foreign listed companies through their products and services on a daily basis!

Investing opportunities present themselves when these businesses extend their reach, market share and profitability.


Reason 2: Geographical Diversification

Diversification is part and parcel of risk management in investing.

Another Investment 101 tenet is, do not put all your eggs in one basket. If you invest in stocks just in one market, any price shocks in that market could wipe out your portfolio.

Diversification helps to reduce your risk by spreading your money over a variety of assets. You can diversify by type of asset, sector and geographical region.

Recall the massive civil protests in Hong Kong in 2019 which pummelled consumer spending and investor sentiment. Businesses lost money and many had to close down. As a result, Hong Kong shares came under heavy selling pressure. If you were a pure Hong Kong investor in those days, you could have lost a tidy sum of money.

Trading different markets could reduce your reliance on a single market for returns. With access to over 20 markets – including Singapore, the US and Hong Kong, POEMS offers a good selection of global markets for you to trade in!


Reason 3: Market Liquidity

Market liquidity is crucial in trading.

A liquid investment implies there is sufficient trading interest in the market to allow you to buy and sell your assets quickly and easily.

A liquid market is generally associated with less risk as there is usually someone willing to take your opposite position.

This means you can find a buyer to offload your assets without having to cut your price too much or buy assets without the need to pay too high a premium.

Here are some of the largest and most liquid stock exchanges in the world

  • New York Stock Exchange, United States
  • NASDAQ, United States
  • Tokyo Stock Exchange, Japan
  • Hong Kong Stock Exchange, Hong Kong

Given that foreign markets have different operating hours, there are always trading opportunities round the clock!

At POEMS, we offer free live prices for the Singapore, Japan, Malaysia and US stock markets. This means you can trade with confidence with our 24/5 trading support!

Explore an array of financial products across multiple global exchanges at brokerage fees as low as USD$1.88 flat when you open a Cash Plus Account with us today.

Trade with confidence on POEMS’ award-winning suite of trading platforms, with a trusted broker that is regulated by the Monetary Authority of Singapore (MAS). We are present in 15 countries, including Indonesia, Malaysia, Singapore and the US.

Complete with real-time streaming charts, powerful technical indicators and fully customisable chart tools, the POEMS platform is suitable for anyone looking to navigate markets and monitor real-time price movements.

Open a Cash Plus account with POEMS

Phillip Securities Pte Ltd (a member of PhillipCapital) has over 45 years of trading heritage and is regulated by the Monetary Authority of Singapore (MAS).

  • Trade US shares starting from a flat rate of 1.88 USD
  • Access over 40,000 products across more than 26 exchanges worldwide
  • No platform, custody or account maintenance fee*
  • Free LIVE price quotes* for US, Indonesia, Malaysia and more

*Terms and Conditions apply

About the author

Mike Ong
Senior Dealer

Mike is a member of the largest dealing team that specialises in equities, ETFs, CFDs and bonds in Phillip Securities, managing 50,000 client accounts. He believes in investing long term for passive income and evaluates stocks using fundamentals. He is currently the Chief Editor of the HQ Education Series that aims to equip clients with the tools and skill sets to make better-informed investing and trading decisions.

Related Articles

How To Spot Enter And Ride A Trend

Can Tesla, Nio and XPeng Drive Your Profits Up?

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com