Wait for market correction

If you have cash that is earning 0.5% per annum, and you are worried about the current level of the stock market and the uncertainty in the global economy, which option would you prefer?

• Invest the money for 5 years to get a guaranteed return of 10% (i.e. 2% per year)
• Keep the money in cash and wait for the market to drop by 10%, i.e. ST index of 2,600
• Wait for the market to drop by 20%, i.e. ST index of 2,350
• Invest in preference shares or REITS to earn a yield of 4% p.a. or more

In my view, the chance of the stock market reaching 2,600 within the next 5 years is quite high and reaching 2,350 is moderate. However, when the market does reach 2,600 or 2,350, are you prepared to plunge in, or would you be too scared at that time?

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Research

If you are familiar with the stock market, please send me the preference shares and REITS that can give a dividend of at least 4% per annum. Send to kinlian@gmail.com

Here are some information about REITS
http://reitdata.com/

Here are inforamtion about preference shares
http://www.google.com/search?q=sgx+preference+shares&rls=com.microsoft:en-US:{referrer:source?}&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7ADBR