Time for Action

If you are thinking in the same line as me for past month, you should be appalled by the greatest drama or stage play that is unfolding in the US. Its amazing how fear and uncertainty can be spread through our media. I have purposely stayed away from the markets for a month because there has been nothing as tempting or worth taking the risk.

We watch the news, read the papers everyday for our amusement but you should know deep down what really is going to happen. For the benefit of those who are still confused, let me just anticipate the possible outcome or rather the most likely scenario; US is not going to default, everyone is going to make a fuss about it but they will make the US pay for their debt. Debt ceiling may or may not be raised further, it does not make a difference. Once the fiscal "drama" is over, everything will be back to normal and we will see the next seasonal bull run for the rest of the year. Be prepared to take profits by the end of it.

Meanwhile in Singapore, MAS forecasts core inflation to be hovering in the 2-3% region for 2014. This is highly likely for 1st quarter of 2014 but it might be 4-5% for the rest of 2014. (that is just my opinion) So stocks with good dividends are still a safe bet. UNTIL interest rates go up late 2014.