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Showing posts from March, 2021

OTOP 34: What's Larger Than Singapore Capital Market? Watch This Stock Rises! (ENG) - 29-03-2021

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This Week Highlight - Gold Forecast in April

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  This Week Highlight - Gold Forecast in April Less than a week after President Biden pushed out the USD1.9 Trillion stimulus, his administration is already looking to plan another fresh USD3 Trillion aid package to support the infrastructure and domestic needs. Nevertheless, Dow Jones has topped off its recent fresh high at above 33,000 level and begins to fall instead! The bear sentiment in stock market is due to the rising Bond yields. Despite more monies will be printed and Dollar will eventually be weakened, the fear of stoking inflation is already building up in the market. Ironically, will there be real inflation in U.S. economy when it is so badly dented by the pandemic crisis? Personally, I think this is a ridiculous reason to believe in the white lie. Last year, Federal Reserve increased the leverage in all American banks in holding Treasury Bonds during the impact of pandemic crisis. This is to prevent the tumble of Bond prices and keep the interest rate a

OTOP 33: DOW Swings and Falls, Trade This Market! (ENG) - 22-03-2021

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 Every Monday 9am Singapore time (GMT +8 hrs) we'll take less than 10 minutes to share a market secret with you. Watch it now or Miss it!

The Dow Market Movement

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  This Week Highlight - The Dow Market Movement Following the sign-into law of the USD1.9 Trillion stimulus by President Biden, we would expect the Dow market to soar gain. Indeed, the market did make fresh new-high but a bit short-live in trend! Suddenly, market traders are worrying of rising Bond yield that will put a lid on equity prices. Last Thursday wee hours in Asia, FED chair Powell reassured of keeping the interest rate near to zero through 2023 and led a jump in Dow again. Just one day before the weekend, policymakers said they have decided to end the capital ratio for the pandemic era in March. In simple words, all banks are to reduce their leverage in holding Treasury Bonds from the current capital reserve ratio. That means banks will be pushed to sell off some Bonds soon! Hence, the selling of Bonds will trigger a rise in yields again. Dow plunged 234 points on Friday at market close. In our economic evaluation, U.S. is caught in a slow pace while inflat

This Week Highlight - The Post Effect on U.S. Stimulus

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  The U.S. stimulus worth USD1.9 Trillion has been approved by the House and waiting to be signed into law by President Biden. Target timeline to complete the signatory on the dotted line is today, 14 March 2021. That also means President Biden has to execute his pen power in order to continue the issuance of unemployment benefits to low-income Americans after the expiry date. Last week, Dow Jones market clocked the historical fresh high again on Wednesday when it closed at 32,297 points. The worries on inflation pressure as an eye-washer to long traders have become a bear-trap. Sometime back, we have mentioned in this snippet on the ironical sarcasm of inflation in U.S. economy while so many Americans are cash-strapped due to loss of jobs. Since we are expecting the U.S. stimulus to be rolled out in March, the expanse of this public fund will be able to last for estimate 5-6 months. Practically, we expect the inflation will build up at strongest level sometime in mid-April to end