Singapore has handled the pandemic well, thanks to the decisive actions and economic support from the government.
However, Prime Minister Lee Hsien Loong has recently warned that Singapore should be prepared for more economic challenges ahead.
Singapore’s core inflation has hit 3.3% in April, a decade-high, and global growth may become weaker with the advent of the Russia-Ukraine war and supply chain disruptions.
A recession could be on the cards within the next two years, he cautioned.
An economic downturn is bad news for businesses as it signals lower demand for goods and services, thus crimping revenue and profits.
As an investor, there’s the prospect of your investments reporting poorer earnings while also paying out fewer dividends.
What’s the best course of action?
Should you sell now before things get worse, or hold on to your positions through the recession?
Getting it right, twice
It’s tempting to sell out now and then decide to buy again when stocks become much cheaper....