Updates

It has been a long time.

Been trying to get the problem of sending charts directly from my SI Charts but it seems there is some issue somewhere and till today, I have not been able to get anyone to help me.

It’s been six months since my last post and a lot has happen in the market. Feb 28th steep correction in the SSE was a new beginning of volatility in the China markets. Thou Singapore and the rest of the world has decoupled from the volatility of the Chinese markets, any major correction there WILL affect SG.

As we have witness the last week of trading on Wall Street has been plagued with volatility. It seems we have reached a point where there is some uncertainty in the market. For SG Market, I think it hinges a lot Q2 earnings which is due soon.

Globally, these are the few things to note.

1.) Rising Treasuries, the 10yr is holding above 5%. Should the 2yr and/or 5yr go there, it might signal another round of sell off in the equities market.

2.) Sub-Prime, I am at a lost for this subject but there is much talk about it and how much is actually sub-prime lending. Typically, one will one know the extend of the damage after it has blown up.

3.) Oil prices holding above US$70. If Oil goes any higher, inflation will keep a sore point for the US consumers and Feds.

4.) Major and disorderly unwinding of the Yen carry trade.

I have heard that some investors have been re-balancing their portfolio and holding more cash than equities. I guess there is not harm taking some money off the table.