by Dominic Ortiz | April 16, 2017 9:47 am
Three of the largest listed companies on the Singapore stock market are the major banks in this country, the main financial institutions where the overwhelming majority of Singapore citizens deposit their money, and the main things responsible for lending to individuals and businesses.
On top of that, they are three of the most stable and financially sound financial institutions in all of Asia (as well as the rest of the world) – and for these reasons (and so many more) the stocks that they trade on the stock exchange are some of the best bets in the investment world today.
The number one reason that folks investing significant amounts of money in bank stocks today are diving headfirst into the opportunities provided by the three major Singapore banks is because they do not take on operational risks to the extent that the overwhelming majority of other major banks around the world will.
Singapore has always been a nation of great financial stability, real long-term thinking, and a dedication to keeping business friendly regulations and investment opportunities open to Singapore citizens as well as those abroad.
This kind of business focused culture permeates every aspect of Singapore, from the government to the private sector and everything in between, and this gives the banks in Singapore a lot of stability that other nations just cannot provide.
The upside for tremendous profit potential is here (something we will get into in just a moment), but it’s the lack of downside and risk that has a lot of global investors paying very close attention to everything that Singapore banks have to offer on the stock market.
The really interesting thing about Singapore is that it has decades and decades of financial stability under its belt while at the same time promoting a rapid and aggressive economic growth strategy that has been paying off significant dividends across the board.
As highlighted above, the government of Singapore has always been favorable towards business and investment. It’s easier today than ever before to establish a new business in Singapore, and companies and government organizations are dedicated to building the next generation of entrepreneurs as much as humanly possible – even if that means reaching out to top business talent from around the world and attracting them to Singapore as much as they “home grow” their own talent.
On top of that, they have made concerted efforts and major overtures to attract more and more businesses to Singapore that may be based in other nations as of right now. The Singapore government and the business community is very much dedicated to becoming a global Silicon Valley, hoping to eclipse the current Silicon Valley community in California in the next five years as a hotbed for startups, technology firms, and the financial community.
They already rank number one in the world for attracting top entrepreneurial talent from around the globe, and they are going to continue to rapidly expand their economic base in the years to come. This makes these bank stocks very attractive (even at their already somewhat high prices), mostly because the upside for profit definitely exists and there is next to no downside whatsoever.
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