Down trending of STI Index Chart Is Getting Obvious Now
A deeper correction in our STI Index Chart could be tomorrow or in the near future. It is timely for me to stock check of our STI Index Chart. That’s to see if there is a good opportunity to scoop value stocks after the correction has stabilised. If you can recall or read about my earlier STI ETF 2018 analysis on 15 April 2018, my predictive analysis was quite close to what is the current market situation.
STI Index Chart Dated 15 April 2018.
What’s Now For STI Index Chart?
My quick calculation is showing an approximate 10% correction of STI Index in just less than 5 months. Does this current correction signals a start of a bear market?
Possibility of Further Market Correction of STI Index Chart
I am not a market speculator. But I have a mixed feeling especially this week. The unprecedent trade war could start later this week with a US$200 billon tariff imposed by US to their import of Chinese Goods. This is equivalent to like half of Chinese imports to US. The tariff may be set at 10% or 25%. As the economy of Singapore is open and dependent on free trades, this can be a hit to our local stock market as well.
Why I had a mixed feeling now? I am in the verge of taking a new home loan. I understand Federal Reserve is looking to increase their interest rate later this month and probably later in this December as well. Their reason of interest rate increase is because US economy is doing well. President Trump was criticising Federal Reserve Chairman for such rate increase as it may add more burden to US companies and hence, to derail US economical growth.
The above two big signals make me worried now. On the contrary, I am equally excited and preparing my shopping list of value stocks now.
I stick to my earlier April 2018 stand to get away from the current market volatility. Can open your war chest and apply your value investing skill in time to come. If you are new to value investing, sign up our free value investing Singapore seminar soon.