Why Did $SGX(S68.SG)Lose Steam On Friday?
The SGX lost steam today, dropping sharply by 5.7% because a huge global macro storm hit Asian markets right before tonight's highly anticipated US Non Farm Payrolls Data.
The selling pressure across the board was triggered by a scary combo of skyrocketing global bond yields with the US 10 year Treasury yield surging to a multi decade high of 5.34%. It is also due to a massive spike in oil prices due to rising geopolitical conflict in the Gulf.
This sudden flare up revived global inflation fears, causing international funds to pull money out of rate sensitive exchanges like Singapore's.
Today's drop is a classic cooling off breathing spell for SGX. The STI Index hit a historic all time high of 5,828.50 points just a month ago.
Today's dip is a great opportunity to buy $STI ETF(ES3.SG). It is holding up beautifully compared to individual stocks. This proves why index investing is the ultimate safety net.
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