Guest Post By- Multi Management & future Solutions
Author - Chew Sui Tans (Financial Advisor)
Singapore market is always a lucrative market in terms of stock market investment. The first quarter of 2017 has shown excellent earnings ratios and a bigger success is expected until December 2017.
When compared to the global stock markets sentiments, it is being observed that Singapore market has been harshly bullish in nature.
8 signs that communicate a clear picture of a bullish market.
1 .Every news is Green
In a normal market scenario, investor’s response to the news is very thoughtful but when the market is bullish, no matter how is the company’s performance, the share price always shows a green color, that is pointing towards an upwards direction.
Let us look upon one of the major Telcos. company STarHub, holding a 3rd position in the Republic of Singapore, which deals in 5 business segments that are mobile, Pay TV, fixed enterprise, broadband and related equipment.
This company reported a loss of 20 percent in net operating profit after tax year and also a falling average revenue per user. But with this news also, the share prices rose high!
2.XD companies showing rise in share price
Imagine a company announcing Ex-Dividends on a particular day, the share price returns to the real price when it was in Cum-Dividend time. This is a clear indicator that the Singapore market is in a fire of bullish. If this wasn’t true, ST engineering and Ascendas Reit share price would have slugged after the announcement of XD, but unlikely the share price returned to the same price as it was earlier on CD.This is really a bullish trend.
3.Increase in a number of Pro.
Professional stock trading tips providers have jumped into the market by analyzing the bullish market and an opportunity to chunk the profits. People also tend to follow the tips provided by these Gurus who ensure a profit earning of a certain percentage.
4.Festive season by media
Everywhere on the TV channels media is shouting the new growth of the market. In addition, it is expected that FED might tighten the interest rates by observing a better performance of Singaporean economy. Economy index of PMI, manufacturing, ISN are climbing stairs of progress.
5.Self-motivated for investment.
If the market doesn’t perform good, people run behind you to give thousands of reasons to invest, but when its fetching good returns, you yourself are motivated to invest and make your money potential enough to give you good returns.
Same is going right now, so many people are self-confident in investing money in the SGX markets that they can make good revenues.
6.Selling assets to invest
People who are having deficient savings and earn low incomes from what they do currently, they are trying to sell their assets so that they can invest that money into SGX markets and make premiums and buy back the asset once profits are in their books.
This is though risky but when the market is bullish, it’s tough to talk about guidelines rather easy to just invest with least possible risk taking capacity.
7.High Shiller Index
Rober Shiller gave a model, which helps in creating a cyclical adjusted S&P P/E ratio. Today the dot has come closer to the point similar to the point that was showing a high during the great crash of 1929.
This though not a clear indicator but silently talks a lot about the persisting bullish market.
8.VIX index fluctuations
VIX Index defines the complacent nature of the market. Earlier this index was showing a downfall of a point below 10, in the year 1993, and most bullish during 2007. Besides this, the point has never touched the level of 10. But now it’s about to reach the same scenario.
This states the mind of bullish markets.
Author last note for Bullish Market:
The market is not heading towards downfall but claiming to bring a lot more than expected in the bullish markets. Probably is high that the returns procured are huge with even small investments.
So try your luck today and don’t forget to concern with some latest SGX Investment tips so that you can understand the market scenarios before investing. Additionally, don’t forget that risk involved is high during the bullish markets.