SINGAPORE (Feb 28): Covid-19 continues to take its toll globally and have adversely impacted the financial markets. Global stock markets are on a decline, with the local Straits Times Index (STI) down more than 4.1% since mid-January. In light of the pandemic fear, the market and investors have shifted to safe haven assets, namely gold, government securities, and cash. The price of gold is up 4.7% from last month, while the “risk-free” asset – Singapore 5- and 10-year government bonds, have seen their yields drop by 200 basis points on average due to high levels of demand. A multitude of scenarios have been projected by market analysts and watchers alike — some may say that stocks are cheap, others might say the worst is yet to come. Regardless, when it comes to investing, particularly in times like these, investment safety is of utmost importance. Preservation of capital — as aptly put by many investing gurus — takes precedence over perceived growth.

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