Dear readers, Singapore stocks are now the most overbought since 2000 according to an analyst as reported in a local newspaper today. According to the analyst, the RSI of the Straits Times Index (STI) is the highest since year 2000 which effectively means that Singapore stocks are now the most overbought since year 2000!
I have been sharing recent posts on just how overbought the Singapore stocks and Straits Times Index are. Already, the Straits Times Index is now correcting back to more modest levels. The rallying of Singapore stocks has followed the trend of global stocks, led by US stocks mainly due to three reasons:
(a)the overall low interest rate which make equities attractive; (b)a good public opinion of how US President-Elect Biden will lead the US to better economy and times and (c) development of Covid-19 vaccines
My view is that the aforementioned three factors are not enough to sustain the good performance of stocks markets given that the global economy is already very challenging and it will take some years and significant efforts for the global economy to go back to more normal times.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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