For those companies, have only domestic market, will be affected by the softer growth...
Singapore narrows GDP growth forecast for the year
SINGAPORE — The Ministry of Trade and Industry (MTI) has narrowed Singapore's economic growth forecast for the full year to between 2.0 per cent and 2.5 per cent.
This is a downward revision from the earlier forecast of 2.0 per cent to 4.0 per cent.
"The global economy performed weaker-than-expected for the first half in 2015. For the rest of the year, global growth is expected to pick up gradually, although the pace of growth is likely to be uneven across economies. In particular, the advanced economies are expected to see a gradual pick-up in growth, while the growth outlook of regional economies has generally softened," said MTI.
...
http://www.todayonline.com/singapore/sin...ecast-year
this is important as slowdown is already happening in all sectors...
STI due for downward adjustments...
Yes, have noticed the slow down some 2 months back.
And our STI was still evergreen.. the fall is very, very controlled.
Hope springs eternal... willing buyer, vs willing seller.
Plenty of fat still around the waist... fear is still far away.
Good to do some window shopping and review companies with steady fundamentals.
(11-08-2015, 10:02 PM)Porkbelly Wrote: [ -> ]Yes, have noticed the slow down some 2 months back.
And our STI was still evergreen.. the fall is very, very controlled.
Hope springs eternal... willing buyer, vs willing seller.
Plenty of fat still around the waist... fear is still far away.
Good to do some window shopping and review companies with steady fundamentals.
The fat has gone quite a bit today, after the devaluation of RMB.
SGX is a reflection of the sad state of Singapore economy...
Its is also a reflection of the cumulative problems of policy makers on their approach to the economy as a whole. There is no doubt that Singapore is a safe haven. However, good leadership can only go so far in a world that has a changed world order and where new business initiatives is focused on costs cutting - tapping on technology to lower costs to entice demand as seen from texting via data rather than traditional network, netflix programs vs cable TV.
In a changed world order that resembles that of deflationary forces, having a high costs living and operating environment is highly challenging.
I have been asking what are the sectors that are promising in Singapore and I have yet to get any good answers from any buddies.
And there we are still grapping with high costs of living associated with basic accommodations, transport and food. Remember in economic terms prices are very sticky on the downside and when years of high costs of living is being rooted in the entire economic structure, coping with downward adjustments like what we have seen in the last 12 months will be very tough, very tough.
While I want to remain optimistic, my inner fears for the Singapore economy resembles that of pre 1997 AFC days. Property investments domestically coupled with high gearing and rising vacancies will be ended up in loss years for as long as 8 years (apart from a swift bear trap in late 98/99) largely as a result of external shock.
Sorry for the extreme bearish sentiment but I have been echoing this fear for quite a while.
GG
(12-08-2015, 09:38 AM)CityFarmer Wrote: [ -> ] (11-08-2015, 10:02 PM)Porkbelly Wrote: [ -> ]Yes, have noticed the slow down some 2 months back.
And our STI was still evergreen.. the fall is very, very controlled.
Hope springs eternal... willing buyer, vs willing seller.
Plenty of fat still around the waist... fear is still far away.
Good to do some window shopping and review companies with steady fundamentals.
The fat has gone quite a bit today, after the devaluation of RMB.
During downturn, singapore has to continue to focus on,
External
1) Top Air Hub Status
2) Busiest Port Status
3) Top Regional Oil Products Exporter Status
While at the same time, look into, reducing infrastructure costs,
Internal
1) Housing (more HDBs pls!)
2) Transportation (in progress!)
3) Health Industries (on the way)
4) Child Care / Education ( still growing)
Those have investment in China, are affected the most...
Singapore stocks head for biggest drop since 2011 on China
SINGAPORE (Aug 12): Singapore stocks tumbled, with the benchmark Straits Times Index heading for its biggest decline since October 2011 amid concerns China’s currency devaluation will hurt bank earnings and slow economic growth.
The Straits Times Index sank 2.5%, the most among Asia-Pacific benchmarks, to 3,073.37 as of 11:30 a.m. in Singapore. DBS Group Holdings ( Financial Dashboard), Oversea-Chinese Banking Corp. ( Financial Dashboard) and United Overseas Bank ( Financial Dashboard), the nation’s three key lenders, each slumped at least 4.4% and contributed the most to the benchmark ’s decline.
...
http://www.theedgemarkets.com/sg/article...2011-china
No worries if you are on the right side of our Comrades...
The exercise undertaken by CCP while controversial will be proven effective over time just like Dr M's experiment with Msia against Soros, Yank's QE which is now widely copied...
Its just like cancer cells... they never go away...
GG
(12-08-2015, 03:23 PM)CityFarmer Wrote: [ -> ]Those have investment in China, are affected the most...
Singapore stocks head for biggest drop since 2011 on China
SINGAPORE (Aug 12): Singapore stocks tumbled, with the benchmark Straits Times Index heading for its biggest decline since October 2011 amid concerns China’s currency devaluation will hurt bank earnings and slow economic growth.
The Straits Times Index sank 2.5%, the most among Asia-Pacific benchmarks, to 3,073.37 as of 11:30 a.m. in Singapore. DBS Group Holdings ( Financial Dashboard), Oversea-Chinese Banking Corp. ( Financial Dashboard) and United Overseas Bank ( Financial Dashboard), the nation’s three key lenders, each slumped at least 4.4% and contributed the most to the benchmark ’s decline.
...
http://www.theedgemarkets.com/sg/article...2011-china
Time to re-look your investments.
In the short term, things dont look too good. Earnings in the U.S. is holding up well, but many companies have their share prices hammered anyway. China's stock market is over valued. In general, too much excess capacity at the factories in China. In Singapore, the stock market is probably fairly valued but there is no catalyst for growth, it is stagnant. Globally, anything to do with china/oil/commodities will get devalued, much like the RMB.
It could get ugly. I will usually look hard at my investment portfolio's potential downside and how much I could afford stomach, and those companies with a scary looking downside risk, whether to trim holdings to cut them totally. The down drift could be longer and harder than most would imagine, stay nimble.