StockTalk(5.4): What impact will the US Fed's rate hike bring to the Singapore stock market?

whqqq : The US Federal Reserve's decision to raise interest rates by 25 basis points may have a negative impact on the Singapore stock market, as higher interest rates could lead to a reduction in investment and a slowdown in economic activity in emerging markets like Singapore. However, the extent of the impact remains uncertain, as other factors such as trade tensions and geopolitical risks are also at play. Overall, the effect of the Fed's rate hike on the Singapore stock market will depend on various factors and will need to be closely monitored in the coming months. 

71519856 : The economy in the US good or bad will always impact global markets on most sectors

102133981 : Causing loss of investment and loss of work

ZnWC : FED rate hike in short term may hit stock market especially tech stocks. It's aim is to reduce demand and cool inflation. When demand for tech products drops, revenue and profitability will follows. This will result in share price falling.

Singapore stocks is not immuned and will follow. But stocks are not made equal. In long term, if products that are not affected by rate hike, the company will strive and share price not affected but may face volatility. I called them value stocks with moats.

Investors may also park their money in dividend stocks of company with strong fundamental e.g. REIT. Stable investment such as short term government, T-bill, cash plus fund will be popular as recession risk becomes higher.

Personally I think we're heading for soft landing recession or none. Inflation will remain high til Q4 and volatility will continues. I've written an article that some sectors are not affected by FED rate hike.

Read here:
Market reacts positively to FED rate hike in some sectors
https://www.moomoo.com/community/feed/110302199349254?data_ticket=212ca245a589f1e400fb2e247953bc77&futusource=nnq_personal_host&content_type=feeddetail

Flying Dolphins : Hike in rates will make investors to be on cautious sentiments therefore some may panic sell and buy causing volatility to the market

GodSpeed289 : Generally, the financial sector could benefit from higher interest rates, while the real estate or consumer sectors be negatively impacted by the Fed rate hike. As US interest rates rise, investors may be attracted to invest in US assets, leading to capital outflows from Singapore, resulting in a decline in the stock market as foreign investors sell Singapore stocks. Eventually, if it led to a global sell-off, the local stock market would be affected as well.

Gunshine305baby : automatically declined

Demascus : I think the rate hike was already priced into the market.

Moogoorooloo : The market has been expecting a rate hike of 25bp, so no surprises there. While an increase in interest rate is supposed to dampen the market, the hope that this may be the last rate hike in the near future may lend some support to stock prices.

Still, a lot depends on developments in the world's largest economy. Banks are still failing , the government is trying to avoid a default... again. As for geopolitical risks, well, I don't remember a single year without geopolitical risks.

Any advice on personal investment adjustment? I am not qualified to give advice, but Warren Buffett will probably tell us to just buy an index and invest for the long term.

EYSY : Think a lot of individual investors don't know how to react on rate hikes as they don't know the impact on rate hikes. So when the market goes up, they buy. When the market goes down, they sell. This just amplify the magnitude of movement in the stock market and thus increase volatility.