TOM K: “GLOBAL STOCKS MARKETS CORRECTIONS: NOT A MATTER OF WHETHER BUT A MATTER OF WHEN!”

-
Singapore Stocks, US stocks
Dear readers, yesterday, the Singapore stocks markets shed a further 0.43% to close the trading day at 3,120.92. For those who have not been following the STI, this territory (the sub 3,200 level) is now a “new normal” for Singapore stocks ever since the STI ETF went below the support level of 3,200.

My continuous belief that the STI would continue to head down, first to 3,000 and then to 2,880 would be not a matter of whether but a matter of when since US President Trump announced that there might be a new set of trade tariffs against China. Coupled with the slow but steady US interest rate hike, the bearish outlook in emerging markets, there are macro risks ahead for global and Singapore stocks. Thus, investors should not rush to buy stocks now, thinking that it is a bargain now. Remember the saying: don’t fight against a macro market trend. And the current trend now is downward.

Even at the current 3,100 level after the Singapore stocks markets have somewhat “corrected”, I believe this level is still not “low enough”. This is because year 2017 was an exceptionally good year for global equities and the Singapore stocks markets have rallied to a good high of around 3,600 for the STI ETF.

The previous financial crisis in year 2008 was resolved mainly via quantitative easing of “printing of monies” and this was akin to “kicking the can down the road”. Liquidity or the printing of liquidities have not solved the most fundamental problems. In fact, somewhere I read, someone said the 2008 stocks crisis should be left unaided, to be corrected, no matter how ugly it would be for the global stocks markets since at least the real fundamental root of the problem would have been resolved.

The next stocks markets corrections in my opinion would be here soon. All the necessary ingredients to ignite this correction are more or less there. All it takes is for a spark from any front to ignite and the stocks markets would be sent in a tailspin. Only this time round, I don’t know what governments have in their arsenals to remedy the stocks markets. 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.

Popular posts from this blog

HOW TO PREPARE FOR THE NEXT POSSIBLE STOCK MARKETS CORRECTIONS NOW?

-
Image
As we navigate through uncertain economic times, many investors are questioning the possibility of the next major stock market correction. With global tensions, inflation fears, and potential interest rate hikes looming, there are concerns that a significant downturn could be on the horizon. The stock market has been on a bull run for over a decade, and many experts believe that a correction is long overdue. While it is impossible to predict exactly when a correction will occur, there are some warning signs that investors can watch out for. High levels of market volatility, overvalued stocks, and excessive levels of debt are all indicators that a correction could be on the horizon. Additionally, geopolitical tensions, economic downturns, or unexpected events can also trigger a market correction. Investors should prepare for the possibility of a stock market correction by diversifying their portfolios, staying informed about market trends, and having an exit strategy in place. It is i
Read more

YEAR 2008 GREAT FINANCIAL CRISIS: LESSONS LEARNT

-
Image
The 2008 financial crisis, also known as the global financial crisis or the Great Recession, was a severe worldwide economic downturn that began in late 2007 and lasted until 2009. It was triggered by the collapse of the housing market in the United States, which led to a chain reaction of events that ultimately caused a global recession. The crisis was fueled by a combination of factors, including a housing bubble, subprime mortgage lending practices, excessive risk-taking by financial institutions, and complex financial instruments that spread risk throughout the global financial system. As the housing market collapsed, banks and financial institutions faced massive losses on their mortgage-backed securities and other assets, leading to a credit crunch and a freezing of credit markets. The crisis had far-reaching consequences, including a steep decline in stock prices, a spike in unemployment, and a sharp decrease in economic growth. Governments around the world were forced to
Read more

BREAKING THE ROUTINE: EXPLORING THE CAREER STAGNATION PHENOMENON

-
Image
There are several reasons why people may feel stagnated in their careers after many years of working: 1. Lack of growth opportunities: Some individuals may feel stuck in their careers because they have reached a plateau and there are limited opportunities for advancement or professional development. 2. Burnout: Years of working can lead to burnout, which can make it challenging to find motivation and passion for one's work. 3. Lack of recognition: Some individuals may feel underappreciated or undervalued in their current role, which can lead to feelings of stagnation and dissatisfaction. 4. Job dissatisfaction: If someone is no longer finding fulfillment or enjoyment in their work, it can contribute to feelings of stagnation and a desire for change. 5. Fear of change: Some individuals may feel trapped in their current career due to fear of the unknown or uncertainty about what other opportunities may be available to them. 6. Lack of skills or qualifications:
Read more

WHAT ARE THE COMMON SIGNS OF A STOCK MARKETS CORRECTIONS?

-
Image
There are several common signs that can indicate a stock market correction may be on the horizon. Some of these signs include: Increasing volatility: If the stock market starts to experience greater fluctuations in price movements, this can be a sign that a correction may be imminent. High levels of market speculation: When investors are overly optimistic and buying stocks at inflated prices, it can lead to a stock market correction as valuations become unsustainable. A declining market breadth: If fewer stocks are participating in market gains and the majority of stocks are lagging behind, it can be a sign that a correction is on the horizon. Rising interest rates: Higher interest rates can put pressure on stocks, as borrowing costs increase and reduce corporate earnings. Economic indicators turning negative: Signs of a slowing economy, such as declining consumer spending or rising unemployment, can lead to a stock market correction. Insider selling: If company insid
Read more

HOW DOES A MINIMALIST LIFESTYLE SAVES YOU MONEY?

-
Image
A minimalist lifestyle is characterized by simplicity, intentional living, and focusing on the things that truly matter. It involves decluttering and getting rid of excess belongings, prioritizing experiences over material possessions, and finding contentment in the essentials.  Minimalists often prioritize quality over quantity, opt for a streamlined and clutter-free living space, and aim to reduce waste and consumption.  Overall, a minimalist lifestyle is about living with intention, mindfulness, and freedom from the pressures of consumerism.  Let us see how a minimalist lifestyle saves one monies?  Lower maintenance costs: Having fewer possessions means less upkeep and maintenance. For example, if you have a smaller wardrobe, you may spend less on dry cleaning, repairs, and replacements. Similarly, having a smaller home with fewer belongings means lower utility bills and maintenance costs.  Avoiding upgrades and consumer trends: Minimalists tend to prioritize quality over quantity
Read more

HOW SHOULD INVESTORS PREPARE FOR THE NEXT STOCK MARKETS CRASH?

-
Image
Dear readers, while we are are nowhere wiser in regard to when the next stock markets corrections are coming, it is always to be prudent for the market correction as and when it come. The following are the ways which you can prepare for the upcoming stock market corrections! Diversify your portfolio: Spread your investments across different asset classes such as stocks, bonds, real estate, and commodities to reduce the impact of a market crash on your overall wealth. Have a solid investment strategy: Stick to a long-term investment plan and avoid making emotional decisions during market downturns. Having a clear strategy in place will help you stay focused and avoid panic selling. Build up a cash reserve: Ensure you have enough cash on hand to cover any unexpected expenses or take advantage of buying opportunities that may arise during a market crash. Stay informed: Keep track of economic indicators, market trends, and geopolitical events that may impact the stock mark
Read more

RISK OF FOREX INVESTING VERSUS STOCKS INVESTING

-
Image
Investing in forex and stocks both carry risks, but there are some specific risks associated with each that investors should be aware of: Risks of Investing in Forex: Volatility: The foreign exchange market can be very volatile, with exchange rates constantly fluctuating based on various factors such as geopolitical events, economic data releases, and market speculation. This can result in significant price swings that may lead to substantial losses. Leverage: Forex trading typically involves the use of leverage, which allows traders to control larger positions with a small amount of capital. While leverage can amplify profits, it can also magnify losses and potentially wipe out an investor's entire account if not used properly. Counterparty Risk: In the forex market, traders are dealing directly with their brokers or counterparties, rather than through a centralized exchange. This introduces counterparty risk, where the broker may default on their obligations or engage i
Read more

PARK AND GROW YOUR MONEY AT 3.40% PER ANNUM!

-
Image
Dear readers, the interest rates these days on fixed deposits average around 3% per annum. What if you could Grow your monies more than the above rates and not having to lock your monies them up in fixed deposits? Yes, what about a 3.40% per annum to grow your monies while you park them in a money market fund?  To find out more, watch the video below from PhillipCapital for more details!
Read more

10 COUNTRIES WITH THE HIGHEST NATIONAL DEBT

-
Image
Dear readers, high debt levels of various countries in the world today can be trigger points for the next global financial meltdown. Here are some of the countries in the world with the highest debt level. 1. United States - The United States has the highest national debt in the world, which is estimated to be over $28 trillion in 2023. 2. Japan - Japan has the second-highest national debt in the world, which is estimated to be over $13 trillion in 2023. 3. China - China has a rapidly growing national debt, which is estimated to be over $10 trillion in 2023. 4. Italy - Italy has a high national debt, which is estimated to be over $3 trillion in 2023. 5. Brazil - Brazil also has a significant national debt, which is estimated to be over $2.5 trillion in 2023. 6. France - France has a high national debt, which is estimated to be over $2.4 trillion in 2023. 7. United Kingdom - The United Kingdom has a substantial national debt, which is estimated to be over $2.3 tri
Read more

MID-YEAR BONUS 2024: HOW TO MAKE BEST USE OF IT?

-
Image
Dear readers, I believe many companies will be giving the company’s mid-year bonus to their staff around Jun this year. The bonus often represents the acknowledgement of the staff’s work to the organization. How should one make the best use of a bonus received? Here are 5 ways to make the best use of the bonus. 1. Pay off debt : Use your bonus to pay off any high-interest debts such as credit card balances or personal loans, which will save you money on interest in the long run. 2. Invest in your future : Consider investing your bonus in a retirement account or other long-term investments to help secure your financial future. 3. Save for emergencies : Build up your emergency savings fund with your bonus to ensure you have a financial safety net in case of unexpected expenses. 4. Treat yourself : It's okay to splurge a little on yourself with your bonus, whether it's a nice dinner out, a weekend getaway, or a new piece of technology you've been eyeing. 5. Give b
Read more