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The SGD is slightly out of sync with current economic fundamentals.
It has weakened against the greenback but held rather steady with the rest of the major currencies.
It ought to weaken further, chances are that it would.
Domestically, higher priced imports(we import everything) will hurt local consumption.
China has been supplying the world with cheap goods, and prices are slowly creeping up as business costs there spike.
So we are in what looks like a perfect storm for companies depending on local consumption.
Rising Interest rates, no more cheap money for weak companies/weak property investors to stay alive.
Rising import prices.
Weak domestic consumption.
Weakening currency.(maybe)
Job market getting worse.
To be fair, many companies are currently quite fairly valued in the SGX with a small handful that is undervalued.
But with little or no growth, the downside risk has increased somewhat.
I have halved my position in stocks locally. 5% of Portfolio in the local market now.
Would not hesitate to increase if there is anything with a screaming buy, but no rush, from the way things are.
It has weakened against the greenback but held rather steady with the rest of the major currencies.
It ought to weaken further, chances are that it would.
Domestically, higher priced imports(we import everything) will hurt local consumption.
China has been supplying the world with cheap goods, and prices are slowly creeping up as business costs there spike.
So we are in what looks like a perfect storm for companies depending on local consumption.
Rising Interest rates, no more cheap money for weak companies/weak property investors to stay alive.
Rising import prices.
Weak domestic consumption.
Weakening currency.(maybe)
Job market getting worse.
To be fair, many companies are currently quite fairly valued in the SGX with a small handful that is undervalued.
But with little or no growth, the downside risk has increased somewhat.
I have halved my position in stocks locally. 5% of Portfolio in the local market now.
Would not hesitate to increase if there is anything with a screaming buy, but no rush, from the way things are.