A reader writes in, asking:
“I’d like to ask your opinion on the announced reduced lot sizes in SGX coming in 2015. Do you think that with the almost certainty (in my opinion) of massive buying starting Jan 2015, many stock prices would rise significantly?
Therefore if I have some capital now, would you advise to buy now, or wait and see market conditions for a few months after Jan 2015?”
If you haven’t heard, the story behind this question is this:
- The SGX announced that board lot sizes (a relic from like, I don’t know, 2,500 B.C.) will be reduced from 1,000 shares to 100 in Jan 2015
- Many shares, which were once out of reach to many investors, will suddenly become SUUUUUPER AFFORDABLE! For example, a single lot of DBS – which now costs around $18,450 – will cost $1,845 with the smaller lot size.
- ...
...