Wednesday, September 14, 2016

Market Update - Will Interest Rate hike affect the market?

Singapore market was down 9 points today to 2809, mainly affected by the weakness in the oil sector, we see that Sembcorp Industry making its 6 month low today, most of the other oil stock is also weak. Another factor is also the recent correction due to interest rate fear in the US market has dampen the sentiment of the Asia market

Some analysts believe the impending U.S interest rate increase will have no impact on Asian markets…do you agree with this?

Personally i do not agree with that. Base on what is happening in the market over the past few days, we see that the Interest rate fear is back, Dow jones and Hang seng has became more volatile. I see that REITs sector has also weaken this few days in regional market, this could be due to fear of interest rate hike which is expected in the end of this month.

What should investors be doing during this period of market uncertainty?

For me i am reducing my position and play defensive right now, especially for those stock that is falling this few day we are very cautious when market is weak. Until the fear subside, then we will be back with some defensive stock.