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Buck Tan: The US Stock Market Needs To Have A KitKat

Buck Tan Mu Kun, one of the key speakers of our upcoming Shares Investment Conference 2H2017 “股林大会” shared his insight and opinion about the local and foreign stock markets on local radio station 95.8fm on the morning of 19 October 2017.

The Dow Jones broke past 23,000 points

The Dow Jones Industrial Average Index (DJIA) hit another record high on 18 October 2017, breaking past the 23,000-point mark.

In Mr Tan’s view, the US stock market still looks to be in a raging bull market. Even in face of all the wet blankets in the stock market, the US stock market is still charging forward and “no one can take the bull by its horns”.

However, for the US stock market to continue its streak in breaking record highs, it needs to “have a break, have a KitKat” after its streak of hitting record highs, said Mr Tan.

If the US stock market doesn’t “have a KitKat”, retail investors should start to be wary. Without a break, the bull might run out of steam.

Pay close attention to the Politburo Standing Committee

When the Politburo Standing Committee (PSC) announces the new list of leaders next week following the recently commenced 19th National Congress (“十九大”) that will end on 24 October 2017, Mr Tan thinks that players might enter the stock market thinking that China’s economic policy will be “maintained”.

That could possibly be why most investors are waiting on the sidelines for the right opportunity to arise.

Avoid oil & gas for a peace of mind

Although investors are speculating with some selected oil & gas stocks recently, Mr Tan thinks that retail investors who want a peace of mind should stay away from the sector for the time being.

Looking at the current landscape of the local oil & gas sector, we might need to wait for quite some time before a sustainable recovery could occur.

In Mr Tan’s view, local bank’s corporate earnings results should be the focus for Singapore retail investors now.

There are two key things to look out for:

  • If the banks are getting affected by the bad debts from the oil & gas players; and

  • If the recent increase in property transactions is positively impacting the banks’ loan business

Rising asset prices are a worry

Fundamentally, the global economy looks poised for further growth in 2018 and Mr Tan doesn’t see any huge red flags as of now.

However, as asset prices and property prices have already risen significantly, any negative news or event might cause a huge correction in the stock market.

Keep your eyes peeled for what lies ahead of us in the remaining months of 2017 and in the new year of 2018.

Upcoming Event

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Buck Tan Mu Kun will be speaking at Shares Investment’s upcoming Chinese conference, 《股林大会》SIC2H2017 on 4 November 2017 (Saturday), sharing the stage with Goh Mou Lih and Liu Jin Shu who are regular speakers at 958fm among other local media platforms, and renowned investment expert Dr Chan Yan Chong.

Here are the five key topics we’ll talk about:

  1. US Federal Reserve’s plan to raise rates and shrink its balance sheet and how the stock market will be impacted

  2. Who will take over the chair of the US Federal Reserve?

  3. China’s market outlook after the 19th National Congress of the Communist Party of China

  4. The Singapore property sector outlook

  5. Which stocks to consider and which stocks to avoid?

Click on the image above or the button below to learn more and grab your tickets!

P.S. Go along with some friends and you’ll receive buddy discounts!

I want to learn from the experts!