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04-02-2014, 10:14 PM
DOW has probably run ahead of the US economy recovery story so a series of poor corporate earnings and data pointing towards a slowing down of growth initiated a correction. Also US debt ceiling due this Friday. The market is expecting US govt to raise the ceiling so alternate scenario will be a nasty surprise.
However, for STI, I felt that many companies are doing well (at least they painted such a picture to me) and economy is growing steadily so it was more being dragged down by the current sentiment of the EM. Many of our blue chips are matured companies with stable earnings and paying decent dividend. Don't see why fund needs to flow back to US for that 2%-3% interest rate bond. If SGD strengthened against USD, all the better when they convert back to USD.
Dow may be down for more corrections. While I don't see why STI should fall along with it, it will most likely be dragged down further.
Just my thoughts.
However, for STI, I felt that many companies are doing well (at least they painted such a picture to me) and economy is growing steadily so it was more being dragged down by the current sentiment of the EM. Many of our blue chips are matured companies with stable earnings and paying decent dividend. Don't see why fund needs to flow back to US for that 2%-3% interest rate bond. If SGD strengthened against USD, all the better when they convert back to USD.
Dow may be down for more corrections. While I don't see why STI should fall along with it, it will most likely be dragged down further.
Just my thoughts.