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The huge risk in seeking ‘safety’ 

Capital preservation means curbing or capping growth. Taking a long view while investing would be the better choice

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    • The STI is hovering near record highs. But investors should not let a fear of heights drive them to "safe havens".
    • The STI is hovering near record highs. But investors should not let a fear of heights drive them to "safe havens". PHOTO: PIXABAY

    Ken Fisher

    Published Mon, Nov 4, 2024 · 05:00 AM

    GOT acrophobia? Fear of heights is common around all-time stock-market highs – such as now.

    With the Straits Times Index (STI) wobbling near record highs after summer’s stomach-turning volatility, many altitude-woozy investors seek “safety”. Enter sales brokers hawking poverty-producing products deemed “safe”.

    You know the approach, offering equity-like growth and capital preservation. Don’t be fooled. Despite seeming sensible, these schemes are as real as world peace or zero-calorie chendol. Let me explain.

    Straits Times IndexInvesting risks

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