The market correction over the past 3 weeks has got many people worried, myself included.
The question is, “Is there a cause for worries?”
Nowaday I hardly look at the market. With my business going on and my online projects, I’m thankful if I get to look at the charts and read the news on weekend.
Let’s take a quick look at the market. In my next post, you will see the STI charts and have a clearer picture.
The Singapore market (and generally many other markets worldwide) had been enjoying a sustained rally for the past 3 years. Conventional wisdom tells us that what goes up will come down, in what is known as correction.
So is the current correction a typical one or a sign of things to come?
The correction this time round almost wipe out all the gain STI had made in 2006. However, from a long term view, this correction is not significant.
From a technical perspective, there is still no formation of significant chart signs to tell us otherwise.
From a fundamental perspective, a little cooling down is good for the market. The threat of a global meltdown, while real should not be taken as doomsday story.
Day or short term traders might have suffer losses but long term investors, unit trust investors should hold. If you are active and savvy, this is a good time to buy and adjust your portfolio.
As for me, I’m holding and watching.
Good luck!
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