What more to expect?

I have been asked many times, what more can we expect. Will the market now drop further?

Briefly, the problems arising from the Greece debt crisis do not seem to be over. The problems in Greece worsened because its citizens did not take kindly (e.g. riots) to the austerity measures undertaken by its government to reduce its debt (in order to be able to borrow from its lenders). Portugal and Spain seems to be next in line - in terms of debt crisis.

The Chinese property bubble does not seems to burst just yet. But the Shanghai Stock market had apparently corrected more than 9%. I believe the Chinese property market is just too speculative and might just burst soon. If it does, I would think the repercussion would be felt worldwide.

Most governments/countries are easing on its economic stimulus package. Whatever impact of the stimulus package would have been felt by now. Once the package is withdrawn, we might see a drop in key economic indicators unless the current growth in economy is sustainable on its own (as in without the stimulus package).

Be mindful that the markets just need an excuse to retrace itself.

As for me, I am preparing to invest in good Singapore stocks (by identifying the stocks). I have liquidated most of my portofio months back. Once the correction is almost over, I will come back with vengence and invest most of my funds identified for investment.

Cheers !

PersianCat