The chart dated 12/11/10 above depicts an ebullient Hong Kong market as fund are pouring into this market as early as late September with ever increasing average trading volumes. The charts above dated 18/03/2011 show the inflows and outflows of funds in the unique boutique markets by displaying the moving averages of 100-day volumes (blue line). The charts above dated 11/02/11 indicate US, Japan & Hong Kong markets have fund inflows unlike Singapore stock market. Let’s look at the chart above dated 12/11/2010 after the announcement of QE2. It seems like QE2 has stopped the outflow of funds from the US stock market but it may be premature to make such a conclusion as there are still many crosswinds in the international arena. Well, before you invest in any stock, you want to make sure that you properly utilize elementary and technical analysis of every individual stock. A growth stock is a stock that enjoys a positive overall cash flow over time. Magnite has attracted a stampede of bulls over the past year, and I believe it still has room to run. Overnight CNH Hibor is still high at 8.7%. Can you imagine paying 8.7% just for borrowing Renminbi for an overnight?
The stock market trading volume, from the 100-day simple moving average, is still at a low level compared to its peak when the sti was around 3500. This shows that the rise in the stock market is not sustainable as the market is propped up by institutional funds only. An under $10 share price raises many red flags, especially with Baltic Shipping Rates this low. Yes, interest rates cannot stay low perpetually and low-interest rates will affect the financial industry especially the banking sector. Although STI has fallen from its high, it has not fallen below its low due to strong investor confidence in Singapore. Singapore is also a well supported and favoured market as its economy is growing at 15% and its economic size will soon overtake Malaysia’s which is 478 times bigger. However, in Singapore context, we would like to have an open standard railway system so that we’re not at the mercy of a single vendor. However, there was only a knee jerk reaction and the stock markets became euphoria with Trump being the president.