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[Jacmar]

Hi Jacmar,

But what happens if interest rates also rise in tandem with cooling measures for property? Rising interest rates would be bad for equities, so where will the money flow to then?
[/quote]

we all agree(?) that singapore cannot raise interest rates as the monetary policy is tied to US indirectly. For singapore to raise interest rates would be suicidal. Go read the latest Edge mag. Singapore this year has an inflow of cash equivalent of 90% of GDP, the highest in the world! already a big headache. Only way interest rates can go up is if the FED raise interest rates. according to the "experts" even if it does goes up maybe in 2012 it will still be marginal and not a huge incrrease. the equity risk premium spread is still wide enough.