$S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)...
$S&P 500 Index (.SPX.US)$
$Nasdaq Composite Index (.IXIC.US)$
$Rex Intl (5WH.SG)$ $Geo Energy Res (RE4.SG)$ $Golden Energy (AUE.SG)$
$OCBC Bank (O39.SG)$ $AEM SGD (AWX.SG)$ $Keppel DC Reit (AJBU.SG)$ $Mapletree Ind Tr (ME8U.SG)$
American inflation is at a 40-year high of 7.5%. In Singapore, inflation is at the highest in a decade. The Fed will be aggressive to combat high inflation, hiking rates and tightening monetary policy throughout the year. There is also high Russia-Ukraine tensions.
The U.S. has experienced the longest bull run in history lasting almost 13 years (154 months). It started on Mar 9, 2019 with S&P closing at 676.53 and ended on Jan 4, 2022 with S&P settling at 4793.54. Not only is it the longest, but also the highest return at 608%. The second is the 90s Dot-com Boom of 9.5 years (113 months) which returned 417%. The bubble then burst. So now, the stock valuations are also very high. Looks like, the bubble has also burst. The S&P has entered into correction territory with >10% fall from its all-time high on Jan 4, 2022. Nasdaq has fared worse. It peaked on Nov 22, 2021 and set to enter bear territory soon, falling >20% from its all-time high.
Stocks are set to fall a lot more in this market rout because of the high valuations and the Fed is set to hike rates for a few years. It could be of the same magnitude as that experienced during the 2008 Recession or 2000 Dot-com Bust.
I will clear all my positions to preserve my capital. The energy sector is set to be the best outperformer. I will invest in oil stock such as Rex and coal stocks such as Geo Energy and Golden Energy.
Another outperforming sector will be banks as their incomes will rise with higher interest rates. But I will avoid OCBC. It's the weakest of the three. It posted a 14% drop in 4Q2021 to $973m, well below consensus estimate of $1.13b.
Sectors I will avoid are tech stocks (especially growth stocks) and reits. They borrow heavily and will incur higher borrowing costs.
With the cash I got from selling, I will buy good stocks, such as AEM, at bargain prices when the bear market is over.
$Nasdaq Composite Index (.IXIC.US)$
$Rex Intl (5WH.SG)$ $Geo Energy Res (RE4.SG)$ $Golden Energy (AUE.SG)$
$OCBC Bank (O39.SG)$ $AEM SGD (AWX.SG)$ $Keppel DC Reit (AJBU.SG)$ $Mapletree Ind Tr (ME8U.SG)$
American inflation is at a 40-year high of 7.5%. In Singapore, inflation is at the highest in a decade. The Fed will be aggressive to combat high inflation, hiking rates and tightening monetary policy throughout the year. There is also high Russia-Ukraine tensions.
The U.S. has experienced the longest bull run in history lasting almost 13 years (154 months). It started on Mar 9, 2019 with S&P closing at 676.53 and ended on Jan 4, 2022 with S&P settling at 4793.54. Not only is it the longest, but also the highest return at 608%. The second is the 90s Dot-com Boom of 9.5 years (113 months) which returned 417%. The bubble then burst. So now, the stock valuations are also very high. Looks like, the bubble has also burst. The S&P has entered into correction territory with >10% fall from its all-time high on Jan 4, 2022. Nasdaq has fared worse. It peaked on Nov 22, 2021 and set to enter bear territory soon, falling >20% from its all-time high.
Stocks are set to fall a lot more in this market rout because of the high valuations and the Fed is set to hike rates for a few years. It could be of the same magnitude as that experienced during the 2008 Recession or 2000 Dot-com Bust.
I will clear all my positions to preserve my capital. The energy sector is set to be the best outperformer. I will invest in oil stock such as Rex and coal stocks such as Geo Energy and Golden Energy.
Another outperforming sector will be banks as their incomes will rise with higher interest rates. But I will avoid OCBC. It's the weakest of the three. It posted a 14% drop in 4Q2021 to $973m, well below consensus estimate of $1.13b.
Sectors I will avoid are tech stocks (especially growth stocks) and reits. They borrow heavily and will incur higher borrowing costs.
With the cash I got from selling, I will buy good stocks, such as AEM, at bargain prices when the bear market is over.
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Pisces girl : So what price will u buy AEM at?
bullrider_21 OP Pisces girl : Very low. Whole market will fall substantially.
bullrider_21 OP : Growth stocks such as
$IFAST (AIY.SG)$ $Frencken (E28.SG)$ $Nanofilm (MZH.SG)$