07 November 2013

US Market Record High - November 2013

US Market advanced, sending the Dow Jones Industrial Average to a record close, as Federal Reserve officials said economic weakness warrants continued stimulus and investors await data this week on jobs and growth.

My thought is that, with stimulus to continue (we may see a reducing amount of QE next year), the investors still prefer to stay investing in equity market. I am still not sure when the interest rate will go up, but I believe that it will eventually, to curb the inflation. 

While Singapore use Currency as its main tool to fight against inflation (imported goods), it may also follow US step to increase the interest rate to stop hot monies from flowing into the country. Now, with so many cooling measurement applied to property market, we do see a continued interested among Chinese investors to purchase private properties here. 

Singapore market still does not recover from its peak in May 2013, which I think is a bit weird. Maybe the hot money continue to flow back to US market, once signal of recovery there is strengthen. Nonetheless, I still look good on Singapore stock market as the overall market PE remains at reasonable level.

Mr. Cheng from Wing Tai was appointed as Deputy Chairman of Temasek. I believe it is due to his vast experience in oversea business. I hope that he can bring in more ideas for Temasek to continue to grow the fund in prudent way. 

Source: http://www.bloomberg.com/news/2013-11-06/u-s-stock-index-futures-rise-amid-stimulus-speculation.html


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