The recent mini-correction in the stock market must have caused some jitters to many local investors. Most of us wonder whether the current Euro debt mess, which has been on-going for three years, will spark off a major world-wide stock market mayhem or taper off in a few years. My own personal view is that history will repeat itself all over again and that a major correction is coming, probably at the second half of the year.
During 2007-2008, my company announced pay adjustment for all existing employees and I remembered my pay was adjusted upwards by $550. The feeling back then was buoyant for everyone in Singapore. Fresh graduates got record high starting pay and people were making money in the stock market. Penny stocks were speculators favourite plays and volumes for these counters were extremely high.
Then, reports of “sub-prime mortgages” started to surface in newspapers article. Most people just shrugged off this development in the United States. The issue dragged on for several months and soon imploded with the collapse of the Lehman Brothers. Of course, the stock markets tanked and caused world-wide mayhem. There was a U.S. Presidential Election and Obama was sworn in as the new President to deal with the financial crisis.
Fast forward to today, my new company announced a 15% pay adjustment. Last month, there was a penny stock rally. Recently, news paper reported that fresh graduates getting high salaries again, with Law graduates leading the pack. Reports of Euro debt crisis surfaced again and French has a new President. The recent developments look too similar to year 2007 – 2008 that I believe a major correction is looming.
Is it the ripe time to enter the stock market now? Get ready your investment monies to shop for bargains during the crash. Grab hold of opportunity when it comes!!
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SG Wealth Builder