As far as the stock market is concerned, it looks like it hasn’t been a great start to the Year of the Rat.
As of the time of writing, Singapore’s Straits Times Index is down 2.6%, or 84 points, to 3,156.2.
Market participants are spooked by the Wuhan coronavirus, which has already claimed 106 lives, with more than 4,000 cases confirmed in China. As of 27 January, Singapore confirmed its fifth case while 57 cases are pending test results.
Amid all the scare, what should Singapore investors do, or shouldn’t do?
Market’s Doing Its Thing
Firstly, we should keep our cool and realise that stocks are inherently volatile.
From 1993 to 2017, there were a total of 6,411 trading days, and the Straits Times Index more than doubled, without dividends.
During that period, there were 870 days when the index lost 1% or more, 242 days with