Dear Readers,

Happy New Year!!! I wish all of u good health and great wealth in the year of the monkey~!

Over the last 5 years the STI has been on a roller coaster ride from 3261 (3Jan2011) to the current 2882 level (31Dec2015), the STI fell over 11%… and even if we factor in a 3% yield over 5 years, the net returns would be positive but disappointing.

However I still continue to believe that stocks are great long term investments, research have shown that one could expect long term returns of 8-10% from this asset class. 5 years of under performance could signal that the index is due for a reversion to mean and there’s a strong probability of 2016 being a strong up year.

I believe that all the negatives have already been priced in, be it worries of rate hikes, the oil crisis or even the …