Dear readers, US stocks markets corrected yesterday. The correction was significant with Dow Jones heading down by 2.78%, the S&P 500 by 3.51% and NASDAQ Composite by 4.96%. According to what was reported, the correction was due to sell-off in US technology stocks.
This correction was not an unexpected one over here at SG Stocks Investing.
Just late last night, I shared a post on Four Oversold US stocks . I ended off the post by asking readers to view these four oversold US stocks against the backdrop of one hundred and thirty four overbought large-cap US stocks which means the US stocks are now quite overbought. Then we saw the US stocks markets correcting.
Or this post about possible stocks markets corrections where I have in advance cautioned that it is a matter of time when stocks markets will undergo financial meltdown soon. This is just one of many recent posts where I highlighted that despite the US stocks markets heading up, the Singapore stocks markets have been selling. And this selling is not from bearish news but in anticipation of the stocks markets heading down next.
And I have been mentioning the 2,500 support level of the Straits Times Index in the near time since some months ago. This really translated into reality as the Straits Times Index has been consolidating around this level. In a stock markets meltdown, I would expect the Straits Times Index to hit the 2,000 level as support.
I would like to share that I am not sharing the above to prove that I was correct in predicting the market movement or whatsoever. This is immaterial. What is important is about You as an Investor, how you could make sense from this and emerge as a winner.
Yes, the winner way would be to invest in the stock markets by buying stocks at a discount when all investors have fled during a stocks markets meltdown. Prepare an Investment Warchest NOW as what I have advised many times! In fact, I just read this article from DBS which reported rich Asians are hoarding cash for post-pandemic deals . This attests once again the importance of cash in this uncertain economy. Cash is King when stocks markets correct.
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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