Market started its corrected and Singapore economy remains resilient

TigerTalks
2022-05-20
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Written by @长线投资不投机

As predicted in my previous article, the market has started its correction. We do expect more downside but from an STI perspective, there is strong support at 3,000 levels. Despite the softening of the stock market, the Singapore economy has been demonstrating resilience. Key economic data remains positive and with the relaxation fo COVID safety measures and further opening of borders, we do expect the economy to continue growing.

So what does it mean when the market is softening and yet the economy is doing well?

It is probably a good time to watch the market as we are likely to see a window period of good companies at undervalued prices! In my watchlist I now have REITs and dividend stocks which I am ready to buy in the next 1 or 2 months. Do start building your watchlist to capture this opportunity!

 

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Comments

  • ___ _
    2022-05-20
    ___ _
    Win 20 Tiger-coins
    I'm pretty surprise actually that Sg market isn't badly affected.  in fact I see $Prime US ReitUSD(OXMU.SI)$ and $MANULIFE US REIT(BTOU.SI)$ badly affected primarily due to their high exposure in US
  • RDPD富爸穷爸
    2022-05-20
    RDPD富爸穷爸
    Win 20 Tiger-coins
    I agree with the author's view that SG market is resilient this year. My reason is because SG is mainly make up of industrial, financial and REIT where as US is experiencing larger drop due to large
    • RDPD富爸穷爸ReplyRDPD富爸穷爸: 
      economy with no recession? I do somewhat agree with his view given that there is no big catalyst to justify a bigger drop. In any case, any drop is an opportunity to DCA in my view.
    • RDPD富爸穷爸: 
      presence of tech and growth companies. With interest rate hike, it impact mainly aforementioned industries hence the bigger drop. The author is with the view that we are expecting slower growth in the
  • AmberCasino
    2022-05-20
    AmberCasino
    Win 20 Tiger-coins
    It's important to note that the SG Market lags behind the US. Whatever that is happening in the US will surely ripple to our shores. It is just a matter of time. We can reference the AFC to know more.
  • MHh
    2022-05-20
    MHh
    Win 20 Tiger-coins
    I also have reits and banks in my watchlist. Buy for dividends. Recession may hit but historically SG has been resilient!
  • Songa
    2022-05-21
    Songa
    Win 20 Tiger-coins
    I try not to time the market and buy regularly. This insitls a sense of investing for the long run and leas of a opputunitstix and hence gambling apporach. My 2 cents :) what stock? DBS, SIA, CAPLAND
  • koolgal
    2022-05-22
    koolgal

    There is a disconnect between the stock market and the economy.  The stock market actually moves independently from the economic situation.  So even though there has been lots of talk about recession currently, the actual economy is not in recession yet.

    In fact the market is forward looking and has already priced in the recession.  That is why the stocks have been volatile lately.

    Also rising interest rates actually hurt the stock markets.  This is because it makes it more expensive for companies to get loans especially growth stocks.

    That is why even though the Singapore economy is doing well, the market has started its correction.

    @TigerTalks  

    @TigerStars  

    @CaptainTiger  

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