Dear readers, the US stocks markets sank yesterday by a magnitude which investors had have not seen for quite some time already. Specifically, Dow Jones sank 3.43%, S&P 500 retreated 3.53% and NASDAQ Composite went south by 3.73%. The reason for the pronounced decline? Well, according to news, the retreat was attributed by increasing number of Covid-19 cases amidst a fragile economy.
Here back in Singapore, the Straits Times Index (STI) already broke below the oft-cited support level of 2,500. In line with the performance of US stocks yesterday, the STI is likely to finish off similarly south this trading day.
Expect more decline in the US stocks markets which will then have a subsequent impact to the other stocks markets in the lead-up to the US Presidential Election. In my opinion, the Straits Times Index may even retreat to the 2,400 support level amidst all the volatilities.
But recall this 2,400 is just my near-term support level. I have 2,000 as a first support for the Straits Times Index should the stocks markets go into the more than a decade in waiting financial meltdown. Many have said this is not possible but there is no stopping this next financial meltdown as what goes up must come down. Investors are well advised to note that prior to Covid-19, the global economy is already not doing well. It is just that stocks markets are now pretty much hyped up these days due to investors flocking there on the back of a low interest rate.
Now, when the stocks markets go into meltdown next, join me and the investors who are already preparing for this to go bargain hunting in the bottoms of the meltdown as we become the Kings of the stocks markets next.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! 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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