Nasdaq Composite Index at 5 year Highs
Source: Bloomberg
New York Composite also at 5 year high
Source: Bloomberg
STI not belonging to a 5 year high
Source: Bloomberg
Conclusion
The US market is likely to correct as it has gone up to a 5 year high. Stocks had been rallying at a steady pace even with the government shut down. Investors are still optimistic that the continuation of QE will bring about better profits for businesses and are not worried about the impact of the government shutdown.
STI still have correction risks, but the government are still running without major problems. The economy is growing, although at a very slow pace.
Taking the story of the race between a fast but complacent rabbit losing to a small but steady turtle can be used to describe how long term investing can win the race by placing assets in a slower growing market and avoid the risks of complacency which might lead to a major stocks correction.
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