Singapore is now in its third recession. Asset prices have come down in many markets from stocks to property. A massive S$20.5 billion plan in its 2009 Budget has just been unveiled to help Singaporeans keep jobs and viable companies stay afloat.
And for the first time, the government will be dipping into its reserves to draw S$4.9 billion to fund two temporary and extraordinary measures. They are the Jobs Credit and a Special Risk—Sharing Initiative.
These are all done to prop up our falling markets. Is there any light at the end of the tunnel? These are all legitimate questions to ask. But history has always shown us that recessions will end. Research done by the US based Charles Schwab and Co has demonstrated that nearly half of an equity market's gains are packed into the first 12 months after a market's trough. The key to successful investing comes from building your portfolio and looking at the longer term prospects.
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