December 29, 2014
Indicator
Traditionally stock market has been viewed as an indicator of the economy. When a large decreases in stock prices are reflective of a recession is near, and a large increases in stock prices suggest a economic growth is near.
However, all setup can fail.
Now, the oil price decline has also forced the market to go into market deflation. Is this a recession? In Singapore, Channel NewsAsia has reported Singapore Experiences Deflation for First Time in 5 Years.
It seems relevant to further research this topic. May be this is the economy professionals’ job to prove which is which.
What is the implication when what if the price is fall slower than the market? See the articles on Slow Fall in Pump Prices Irks Consumers.
Straits Times Index, STI
Singapore economy indicator, Straits Times Index, STI has been struggle since July this year to travel north. The zone has been giving the index a hard time. Who will except the economy is not as rosy as everyone would like it to be. Now, with the property is down, the index is struggling, and so on. Now, added a new element, the oil price has to come down.
The market will become very challenging; everyone has expected there is a inflation. Transportation is expected to go up, stamp fee has just went up, another phase of public transport fee is pending for increase. … Will any recalculate the new revenue for 2015; to revise down. Will see.
Again, this the the economic professionals to make a call.
This is a Star year for them.
Let examine the STI, December 23, 2014 Daily.
Economy Indicator, Straits Times Index, STI December 23, 2014 Daily
Let see the STI after Christmas, December 26, 2014 Daily.
Singapore Stocks Indicator, Straits Times Index, STI December 26, 2014 Daily
Can 3350 to 3360 zone hold the index from traveling north?
Thanks for visiting the site, AmiBrokerAcademy.com.
Moses
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