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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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.
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