Global fund movements might have caused the STI to be slightly weaker than it was suppose to be. Last friday, the Dow Jones Industrial Average gained 1.08% while the STI dropped 0.78%.
More funds have been moved to the US in favor of the bond purchases by the Fed and although investors are anxious about a taper in bond buying, they are still very positive about the US market. The continuous bull trend in the US might be causing a bubble that could burst anytime with a 5 year high Dow Jones, S&P 500 and NYSE. What goes up must go down.
If more investors get positive about the US markets, funds may be withdrawn from Asian markets as Asian stocks get more expensive.
Be on the lookout for some good deals in the STI if it continues to drop further.
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