The drastic market turmoil in US has taken another toll. Even before the fed could cut rate by another quater percentage point to 4.5%, to try and salvage the situation, the dollar slide to a new low against the euros on speculation that a government report will show a drop in US durable goods orders. All these adding to evidence that the US economy is slowing down.
In singapore, stocks strengthen for the 3rd consecutive day and the STI index remains toppish. Retail investor have to be wary about the market, if the US faces a slump it will be a a global issue. Lets hope it'll be a deflation rather then a bust. The US government intervention could only sustain for a period and lets hope it'll not lead to a chain-reaction bust to global economy. Not to mention if US wage war on Iran or Syria, the world will be in for some serious shit. On the contrary, opportunities appear when there are chaos. Will the holy grail appear? I'll wait and see.
So maybe yearend would be a good time to visit the states? I believe the USD$ will drop to a low of $1.42-1.45 against the SGD$. But hiking fuel prices is forcing major airlines to increase their fare. I guess people holding on to euros are laughing their ass away now. Meanwhile, its time to hold on to cash rather then equities. I might not invest my money in stocks yet but i might consider going back in to forex. This time round i am betting on the Swiss Franc.
