Tuesday, June 26, 2018

SINGAPORE STOCKS: EVEN IF THERE IS A TECHNICAL REBOUND, I WILL NOT INVEST


Singapore stocks
Dear readers, Singapore stocks experienced another southing yesterday. The STI index went south by 0.81% yesterday to bring the STI to 3,260.84. From a high of 3,641.65 to yesterday closing mark, the STI has retreated by 10.45%. As I have shared in my previous posts, the Singapore stocks STI should retreat even lower first before it goes up. However, even if there is a so-called technical rebound in the STI and Singapore Stocks, I will not invest in Singapore stocks for the time being. Why is this so?
Well, even when Singapore stocks have corrected like now, to 3,260.84, and headed south by more than 10%, the reality is that the STI now is still considered high. This is because we are comparing against a high base, that of the STI last year which was a very good and bullish year for stocks. Thus seen in this light, even if there is a technical rebound, I would think year 2018 will not be as bullish as last year, thus would be skeptical of any sustainable rebound to recapture the high of 3,600 and more again.

In a nutshell, the macro for equities now is less favorable than last year. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.


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