JMH USD

With the major banks share prices sliding, it’s a good time for long term investors to buy lots and dollar cost average

It seems that most focus on the bank selloff instead of registering a broad SG market weakness today. Almost all discussions focused on the impact of the Citi analyst downgrade but is this the cause or just the trigger for the sell down? The toppishness/high valuation of the banks have been shared for quite some time but those voices were rediculed by the bank bulls who shares their unwaivering conviction that banks will only go up. Sometimes, Mr Market is just waiting for an excuse at an opportune time to take profits and pass the bag. Such is a time for the baptism of fire for new investors. Good luck and may they emerge stronger after this.

All new stocks are up today, 😇

Previously, bank stocks required 100 shares per lot, now reduced to 10 shares per lot. This seemingly simple yet abnormal move must have some hidden motives. Before, with 100 shares per lot, you could only bet if you had money; otherwise, you could only watch. Now, it's so easy to place a bet with just 10 shares per lot???

Speaking on hindsight (oops) but banks have run out quite a lot in terms of valuations and dividend yields. A good chance for long term investors to get some exposure if prices correct further.

The Fed minutes signal a broadly hawkish stance, with all officials supporting September’s hike and most favoring another increase by year-end. This reinforces expectations for a prolonged restrictive policy, potentially keeping upward pressure on Treasury yields and equity valuation multiples. However, the 10-year yield’s retreat after a strong auction indicates solid demand for long-duration Treasuries, limiting the immediate rise in borrowing costs. Markets will likely remain sensitive to inflation, labor-market data and subsequent Fed guidance, particularly whether economic resilience warrants further tightening or eventually allows policy stabilization.

The market retreated after a strong rally and the Fed minutes show a hawkish posture as well. Upcoming labour data might dictate market’s direction.

The temporary pullback in Singapore bank stocks could present a great accumulation opportunity for long-term investors. However, given the ongoing shifts in US yields and global macro uncertainties, it's wiser to dollar-cost average (DCA) gradually rather than jumping in all at once.

The hawks are flying high above! But that was before labour data. What will upcoming data say? Will the hawks go home and the doves come out? 😂

Crazy move by the banks just because of one downgrade rating.