IS THE US STOCK MARKET GOING TO CRASH : RIGGED? : WHY YOU SHOULD INVEST IN THE SINGAPORE MARKET 2020

IS THE US STOCK MARKET GOING TO CRASH : RIGGED? : WHY YOU SHOULD INVEST IN THE SINGAPORE MARKET 2020


hello guys Calebby here
today I’m going to share with you why I believe that the Singapore stock market is undervalued
Something ridiculous is going on between the Singapore stock exchange, the stock market
and the Singapore economy as a whole so in this video I’m going to share with you
why I believe that you should invest in the Singapore stock market so the worth of all
companies in a country should reflect how good the country’s economy is doing it should
therefore grow at a same pace as the country so when the economy doubles the stock market
should also double they will have to keep pace and over time they will be in tandem
with each other now before we get on to the video you see that little button right there?
when I point here it means to smash the like button and when I point here means to subscribe
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videos you will be notified now seriously to move on with the video so in order to do
this video I’ve read three different countries’ economy, their GDP(gross domestic product)
I’ve also checked their stock market now take the three counties I’ve recently done some
research on I took the data from three different places of two countries and one region I’m
not going to call that place a country because I don’t want to get banned in that country
(CHINA) now the time period I’m going to cover will be from 1988 to 2018 the reason why I
take 1988 to 2018 is so that it will be a 30-year period where we have all the data
now I did not take 1989 to 2019 because 2019 is not yet over we are still in December alright
so this 30-years period now we’re going to go through this 30-years period of the country’s
GDP and its local stock exchange and you know what you shouldn’t joke about? menstruation period. okay back to the topic the examples I’m going
to give for the GDP will be all in the USD because that’s the standard rate of exchange
for most countries except for maybe Kim Jong Un and North Korea (Parade Music) (Marching)
so GDP will be in terms of USD, united states dollars the stock market however will be in
their local currency. alright now to start off we have the United
States of America the richest country with the biggest economy in the world now the United
States economy grew from 5.4 trillion to 20.89 trillion dollars, USD. in today’s term Now
that’s more than 3.8 times! While for the united states most people would
take either the DOW Jones Average or the S&P 500 as a way to measure how their stock market
is doing so now we are going to take S&P 500 so for the S&P 500 in the last 30 years it
closed at US$349 in 1988 and in 2018 it closed at US$2,976 now that’s a 8.5 times growth
over the same 30-years period which means that the stock market of the US has grown
twice more than how much the economy grew over the same period of 30 years now the second
example would be Hong Kong we have a love-hate relationship Singapore and Hong Kong so we’ll
talk about Hong Kong one of our rival brothers who we love very much Hong Kong’s GDP in 1988
was US$59.71 billion and then by the end of 2018 their economy or their GDP has grown
to US$362.99 billion now that’s a 6 times growth so Hong Kong’s economy actually grew
at a faster pace than the United States now for the same period Hong Kong’s index, most
people would take the Heng Seng Index as a way to measure the Hong Kong stock exchange
we’ll take that as an example now the Heng Seng Index grew from 1988 from HK$2,748 to
2018 when it is worth more than HK$26,346 thats a mighty 9.8 times growth for Hong Kong’s
stock exchange over this same period where the GDP only grew by 6 times now now now to
the pinnacle of the Singapore success and why I believe the Singapore stock market is
way way way undervalued so the Singapore economy grew from US$25.37 billion in 1988 to US$364.16
billion over this 30-years period now that’s more than 14 times growth 14.3 to be exact
whereas for for Singapore usually economist would take the STI the Strait Times Index
as a way to measure the stock market as a whole now the Strait Times Index closed at
SG$1,411 back in 1988 but in 2018 it closed at a whopping SG$3,193 yes that’s a meager
2.2 times over 30 years if you put all your investment into the Singapore stock exchange
or the Strait Times Index to be exact by 2018, 30 years later you would only have grown your
investment by 2.2 times. even though the economy has grew by more than
14 times now before you start commenting and private messaging me YOU’RE STUPID STOCK MARKET
AND THE ECONOMY ARE NOT DIRECTLY RELATED or YOU SUCK ITS SO EASY TO DO INVESTING NOWADAYS
COMPARED TO LAST TIME OF COS MORE PEOPLE ARE GOING TO INVEST THAT’S WHY THE STOCK MARKET
WILL GROW FASTER IN THE US STOCK MARKET AND IN THE HONG KONG STOCK MARKET STOP! please
let me explain now I agree that due to the many different economic factors factors like
the exchange rates purchasing power polarity accessibility and reliability to the stock
market of the US and Hong Kong as compared to Singapore even foreigners of US or Hong
Kong itself will be investing in the US stock market or the Hong Kong stock market thereby
pushing up the demand and increasing the price every further even faster than the economy
is growing if that’s the case it would mean that a bubble has been forming over the last
30 years and it’s still bloating to this day now either that of it would mean what I would
really like to believe that although Singapore is considered a regional financial hub by
most people and most country a financial hub accessible to billions and billions of dollars
of capital like what was portrait in the movie crazy rich Asians (CRAZY RICH ASIANS 2018)
now our people are not investing as much as our money into our local stock exchange me
for example most of my investment in the stock market are in New York Stock Exchange(NYSE)
and NASDAQ so I can attest to that reasoning where the local Singaporean are investing
more in foreign stock exchanges more than their local stock exchange thereby boosting
up those other countries’ stock market further than their economy could grow now one of the
reason why I do not invest as much in the local stock exchange is because the local
market is pretty limited like most of our companies if they’re very big they are only
regional players whereas when you invest in a foreign company lets say in Hong Kong you
can invest in MNCs, Multinational Companies which has global reach to every single country
in the world this region has been getting more and more competitive in general because
of the different rising economies Indonesia, Malaysia, Philippines, Cambodia all these
many many different companies in Southeast Asia(SEA) they are rising, their economy are
rising faster and faster as their population grow faster than our Singapore population
could grow so their companies are becoming bigger and bigger out-competing many of our
own regional MNCs I could be wrong as stock prices are not based on just how well the
companies is projected or estimated to grow in the future to make the amount of profit
they can make the reach they can make the market share they could have so it doesn’t
just take into consideration how well the companies are currently in the near future
but rather also in the much much further future now with this in mind it make sense why the
economy of Singapore has grown by 14 times but our stock exchange had only grown by 2.2
times now the main reason why I believe the local stock market is very much undervalued
is because Singapore is somewhat similar to the USA in the way that we are able to attract
foreign talent, innovators into our midst you can take the example of some well known
companies who have moved their head quarters over locally or some of the richer people
who have moved over now you can say that richer people moving over is because of Singapore’s
“status” as the “Tax-haven” but for companies moving their head quarters into Singapore
some of them do not enjoy as much a Tax-break as in their own local economy now one example
is Grab who have moved their head quarters over to Singapore even though they’re started
in Malaysia now I’m not a financial adviser so take of this what you will and thanks for
watching do subscribe for all the different videos that will be upcoming now we’ll be
doing two videos every week usually one on Monday and one on Friday thanks again. I apologise for the cracking voices I’ve actually
borrowed some lighting equipment from my friend and it’s the first time I’m using it for filming
I did not realise about my dried voices until the who video is over so i apologise for that
the next time I do some filming I will drink more water and thanks for watching

7 thoughts on “IS THE US STOCK MARKET GOING TO CRASH : RIGGED? : WHY YOU SHOULD INVEST IN THE SINGAPORE MARKET 2020

  1. Also just checked that Malaysia's stock market grew by about 4 times where's their economy grew by almost 9 times!

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