Dear readers, yesterday I shared on my take of the Singapore stocks markets going forward: how the Straits Times Index (STI) may head down by another 16% to 2,600. On the same day of my sharing, the STI seemed to want to prove that I am wrong as the STI went up by a decent 1.33% yesterday.
Well, while heading up by 1.33% yesterday (30 Jun 21) was good, we must take a holistic view that this 1.33% came on the back of a recent 1.2% southing of the STI on 28 Jun 21. What it means is that the STI has become really volatile.
I am not sure whether investors are coming in and going out of the Straits Times Index (STI) based on how the Covid-19 and Covid-19 situation evolves in Singapore. If so, I will be quite disappointed since the more sustainable trend driving Singapore stocks markets is the global macro economy: think inflation, think US Federal Reserves Interest Rate hike, think about the Covid-19 situation in general of the world.
The stocks markets, in my opinion is not very clear in term of direction at all, north or south. The best, as what I have always advised is to Spend Less, Save More and Build Up More of your Investment War Chest. So that when many investors are fleeing from the stocks markets when the markets correction, you, armed with liquidity on hand will be the King!