Wednesday, August 15, 2007

Crisis in the making or just a short-term turbulance

The Dow Jones industrial average tumbled about 207 points to 13,028 or 1.6 percent. The S&P 500 down 26 points to 1,426 and Nasdaq Composite down 43 points to 2,499 respectively at yesterday 14 august. The big question in investors’ minds must be whether the bull market is over and is it the start or a bear market Singapore.
Investors should be aware that many banks and companies in Singapore have little exposure to the sub prime mortgage problem in US. In the coming months, I believe that the Fed will decrease interest rate and inject liquidity to ease off some pressure in the credit market.
For long-term investors, I feel that the bull market in Singapore stock market is still intact despite concern of credit and inflation problem in US. Between now to 2010, I see Singapore with tremendous growth potential and opportunity. Next year, Singapore will host their first ever Formula One race. Year 2009 will see the newly built integrated resort and following the year after will be Singapore general election. With all these events in line, Singapore will be a city full of buzz and excitement. I reckon that Singapore tourism, retail and hotel industry still would a lot of growth potential due to all these major events coming up.

All in all, I urge investors to stay compose during these turbulence period and firmly believe that the stock market will continue to pick up its momentum by next year. Investors should not sell into strength but buy when there is blood on the street.

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