At Sep 18, market is undecided

Earlier this year, many analyst forecast that stock market volatility would increase as the index goes higher and higher. True enough, that's what we got now. Suddenly, subprime problem become prominent and we are being affected by some poor guy in US. Although in my personal opinion, it would have slow down the US economy, but it should not affect Asia greatly as last time. Because the export share to US has dropped.

Many people is waiting for tonight's announcement. Whether FED would cut the interest rate. If it is 0.25 cut, stock remain flat. 0.5 cut, most likely to go up. If the rate is unchanged, we would see red tomorrow. We pray all is well in US and the attention would be diverted from US problem to internal Asia growth at the later stage of the year. We shall see. I think since the inflation in US is catching up, at most they would cut 0.25. Tomorrow we see STI coming down and a period of stagnant follows.

Having said that people with spare cash, it is your time. Buy only when short term people trying to punish the share price. Few years later, when you look back, you would be glad that you made the decision. My watch list remain the same, but waiting for good entry point. For short term, I might want to read the technical indicator and hopefully can capture the fluctuation of 20%. That's good enough for this period. But the key is to buy a fundamental strong stock, in case, you are caught, we can still look for the future.

Some good news for two of my holdings. FJ Benjamin announced the back door listing of St James Power station. This should increase the value of FJ Ben equity in the venture. Kim Eng start coverage on Orchard Parade with the target price of 3.30. It is quite amazing how they arrive at this valuation. Nevertheless, for the coming few years, OP is probably one of the safe stock you can find on SGX. With record tourist arrival and contribution from Yeo Hiap Seng, the earning should be stable. However, if it reach the fair value fast, I might decide to cash out and re-deploy the fund.