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Analysis on Regional Asset Allocation& U.S. CPI Data
@Kon How:Why is my investment heavier in Singapore than the U.S. market this time? Especially in an up-trending inflation and interest rates over the longer-term. Low inflation and interest rates ‘not likely to return anytime soon’, says PM Lee in a National Day message. This was the headline before PM adding-on to the geopolitical storm gathering momentum between nations. In the following chart, we could see $( STI )$ outperformed $( Dow Jones)$, a flight to quality from U.S. to Singapore markets among investors since the start of 2022. Why? • Singapore could be the only few countries with a concept plan (40-50 years) and master plan (10 to 15 years) and recent years in 2019 with a 100 years plan on environment. 80s high inflation style crisis could be in their contingency planning. • Strong reserves to weather uncertainty, keeping companies afloat, providing jobs and investing in its people. Also, Singapore is in a good position for Sing dollar intervention to counter inflation and an potential financial warfare. • With safe haven among global investors, it provides liquidity. Liquidity is an important asset in a time of uncertainty. Cash is still the king in a time of global insolvency. More video tutorial, follow my YouTube channel:Invest & Trade with Insight Another important inflationary data today, U.S. July inflation number CPI is scheduled to be announced later. Beginning of this year, inflation reached 7% for the first time in decades and since then it has been trending higher. June’s CPI has reached another record high at 9.1%. Many analysts forecast July CPI to be below 9.1%, but it is still not out of its danger zone.7% becomes a new benchmark to track if the inflation is losing its momentum. Studies show inflation starting in 2020, it is much steeper than those in the 70s and 80s. $Straits Times Index(STI.SI)$ $S&P 500(.SPX)$ $DJIA(.DJI)$
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