04 February 2014

US Market Tumbled 300 Points / 2% - 3 Feb 2014

US. Market closed 300 points or 2.0% lower yesterday night, showing that the FY2014 would be a tougher year compared to previous year. S&P index also retreated about 6% since beginning of the year. 

However, to me it is similar to a correction after a record year last year. It is now depending on whether the latest quarterly operating results of listed companies could make it worse or better. As expected, property sector and real estate sector suffered from the speculation on increasing interest rate that may damper demands or interests from investors. 

Overall, we would see STI may experience some period below 3,000 points, a critical psychology support level, which would drive short term traders out of the market and reduce the average daily transaction volume. 

After QE tapering started to kick off since beginning of this year, we suddenly "saw" or "attracted to" a lot of negative news such as emergency market turmoils (e.g. Turkey to increase interest rate to about 12%, China Purchasing Managers Index dipped to near to 50.0 points which indicates slower pace of expansion etc). 

In my opinion, it may represent an opportunity to purchase our favorite counters at attractive price. My thought is to purchase some good counters which provide decent dividend yield as well as growth potential, as the economy would perform better after the global financial crisis ended recently. 

We would see a lot of corporate quarterly report released in this month. So, we may pick up some counters that still enjoy a strong fundamental and hopefully we could enjoy a profit in later years. Always remember not to over optimistic and over pessimistic, as the market is always there.

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