(PRWEB) July 05, 2011
Inflation. That is the current global issue that has been on everyone’s minds. With rising food and fuel prices, it seems as if all necessities and assets are getting more expensive and unaffordable. However, it is precisely because of inflation, it is important to make one’s investments work harder so as to protect one’s capital.
In this current economic climate, investors need to look to a market that has a wide selection of shares with high volume and liquidity so as to ensure a higher probability of making profitable trades. One such market is the US as it is the largest capital market in the world, with the daily trading volume on the New York Stock Exchange (NYSE) hitting up to 2.5 billion shares transacted. Moreover, the depreciated US Dollar is making the US market more and more attractive to Singapore investors.
Some investors might hesitate to invest in the US market due to unfamiliarity. Nevertheless, many people are well acquainted with US indices such as the Dow Jones Industrial Index or the S&P 500 as these indices are reported daily in the media. As such, Phillip CFD has four US Indices CFD (e.g. Wall Street Index USD1 CFD and US Tech 100 Index USD5 CFD) which correlates with the respective US indices and allow investors to benefit from price shifts in the indices without having to own shares of the underlying companies.
Those who are accustomed with American companies such as Citigroup, Apple Inc or Oracle would be glad to know that besides US Indices CFDs, Phillip CFD also offers over 500 US Share CFDs. This means that investors are able to further diversify their portfolio with CFDs at a fraction of the share price as CFD offers leverage. For example, using conventional stocks trading, investors would need about $3,950 to buy 100 shares of Citigroup. With CFD, investors would be able to buy more than 300 shares with the same capital outlay (assuming margin requirements of 30%). This effectively frees up capital for other investments and thus, allowing diversification of one’s portfolio. However, one must note that trading on the leverage also means that it is possible to lose more than what was put into the investment and investors must exercise prudent risk and money management.
Like other Shares CFDs, investors are able to both go ‘long’ and ‘short’ on these US Shares CFDs. In other words, one can open a sell position on any of the counters without having to borrow shares which may be a complicated process if one does not already have a Shares Borrowing and Lending account with a broker. Thus, CFD is a product where investors can make a profit regardless whether the market is bullish or bearish.
To take advantage of the recovering US economy and the cheap dollar, we have decided to launch the Phillip CFD “US Play of the Week” promotion from 4 July to 23 September with zero commission. During this 12-week period, one US counter will be designated as ‘Play of the Week’ and investors who trade that selected counter will be able to receive rebates of up to S$200 in commission per week. In addition, investors who trade in any of the twelve selected US counters during the promotional period can receive a maximum of S$500 in commission rebates!
If you would like to know more about the US market, come join us on 30 July (9.30am – 2.35pm) in our “Great America Sale – Trade the Shrinking Dollar For More” seminar where not only will our investment experts cover technical analysis as a strategy for US stocks, but our experts will also share hedging strategies with Exchange Traded Funds (ETF) and sharing our house view on the general US market outlook.