Dear readers, overnight (14 Aug 19), the US stocks markets headed higher with:
Dow up by 1.48%
Nasdaq up by 1.95%
S&P up by 1.50%
But in case these numbers seem to dispel the notion that the recent stocks markets corrections are temporary, I would think in the near term, stocks markets are poised to continue to head south. Three reasons why stock prices will head lower are:
On home front, MTI downgraded yesterday Singapore’s 2019 GDP growth forecast to 0% to 0.1%. This shows further signs of Singapore’s economy slowing down.
On the macro front, more and more potential vagaries. We had just the Argentine peso crash which I am not sure will have spill-on effects. There are already many vagaries in the macro environment which include US-China trade war, Japan-Korea trade war, economy growth of China, US-North Korea developments, US Federal Reserves’ rate decision policies, Bre-exit, debt level of US, China and European countries.
And on the investor sentiment front, I believe there are investors right now still holding on to their stock portfolio, ready to turn into sellers if the stock markets still are bearish. Hence expect more selling to come as more investors liquidate their positions.
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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