If you’re just starting to invest, chances are you might have come across someone or an online post that suggested to “just buy the S&P 500”. While it is true that the S&P 500 has returned ~10%* p.a. annualised over the last 20 years, the first rule in investing is that past performance does not guarantee future returns.
*As of May 2025 i.e. returns are from 2005. The second thing that many folks tend to overlook is the forex exposure risk. It can be easy to forget about that when the USD-SGD rate has generally been strong over the last decade; but older, wiser investors may tell you otherwise:
Image credits: Macrotrends, screenshot on 22 August 2025 As recent events have shown, investing in USD when your expenses and cost of living are in SGD may not always be a wise choice. USD Returns, SGD Bills Let’s talk…
