WHAT SHOULD ALL INVESTORS TAKE NOTE OF THE SINGAPORE STOCKS MARKETS NOW?


Singapore Stocks
Dear readers, the three US stocks indices Dow Jones, Nasdaq and S&P 500 went south by around 2% to 3% last Friday and it is likely that Singapore stocks markets will perform in a lacklustre manner going forward.
When the 200-Days-Moving-Average of the STI ETF went below the 300-Days-Moving-Average for the first time since November 2016, I have shared with readers here that going forward, the corrections which the Singapore stocks markets have been experiencing will only be more in terms of magnitude and momentum and that slowly, the STI will reach a level toward the 2,880: a level which will officially mean Singapore stocks would have corrected 20% down from its intra-high of 3,600 reached in the earlier part of year 2018. Thereafter, Singapore stocks markets would be officially in a bear market at STI level of 2,880 and below.

As of now, there are not many or nil bullish indicators to take the stocks markets forward though some may say if the Federal Reserves defer the interest rate hike this market, there may be some boost to the global equities market. I do not think that the above is really the case since I believe the stocks markets had factored in the above possibility. And I must really share with readers that there is no stopping the US Federal Reserve from increasing the interest rate hike at its meeting this month too.

I believe I am one of the few Singapore stocks markets commentators out there holding a cautious view of the Singapore stocks markets. A number of others are saying that at this current juncture, Singapore stocks are cheap. Again, I disagree for right now whatever corrections the markets have undergone were against a very high base set in year 2017 to the mid of year 2018. How could Singapore stocks still be cheap now if we are looking at the rather high stock prices of the three local banks? E.g. DBS stock is trading at $24+ per share, how could this be cheap if we compare to the reasonably low prices it has traded in previous corrections at around $11 per share? 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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