My dad was telling me that some analyst said that the Straits Times inching closer towards 3,000 mark on thin volumes is not a good sign. I agree with whoever he is that the local market barometer is heading higher despite relative inactivity. I believe that this has got a lot to do with how the STI is constructed. Again there has been a piece on the papers, this time in the Straits Times, calling for a revamped of the index to exclude the Jardine Group of companies due to their disproportionate influence on the STI.
Looking out of my window, I am getting slightly irritated by the recent property developments at my place. I used to have a nice view of Bukit Timah and a little bit of town, despite staying in the North-East. However, my good view have been blocked by several high-rising condo developments as well as one HDB redevelopment project. Come to think of it, not only is my view obstructed, it is getting less windier!
Back to the original topic. I think it is great that people are worrying because it is always good to have dampeners on excessive enthusiasm. In my very humble opinion, there should be little fears that the stock market is overheating. It is taking a breather but hardly has ended its bull run from last year.
I really think that most of the bad news in the market has been discounted for. I am not saying that there will not be a debt crisis. Rather, it would not kill us the way the Lehman collapse did. I see it as opportunity, should the PIIGS dramedy unfold, as a good time to wait a bit, then buy. But this should only give slight upside.
For those who have got time, you can check on on the SGX website, the latest comments by Noble Group on the bid by Peabody. For such a huge organization, its press release really struck me as somewhat petty but but in goof humour!