STI already in 2100 region. next is 1800.that is 50% retraction
from peak of 3600. that is a more realistic target.
It is getting worse in 4Q onwards why?
1. singapore 3Q data release on fri will show negative
growth.that means we are in fact in technical recession.
2. No good news from wallstreet( BOA miss forecast, cut
dividend),( job slashes across wallstreet) and mainstreet( consumer
confident down, jobless up,housing down).
3. Crude oil prices could be on the move up. OPEC will cut
production. the problem here is alot of country central bank is
cutting interest rate, that means if crude prices going up.
inflation pressure will be back soon to haunt us.
the worse scenerio, the world economy has to tackle and fina
balance between world recession and inflation problems. that going
to take some time to figure out.
just my personal opinion.