US recession fear

US recession – the most dreaded word in financial market now. The recent financial market volatility and little bear are all because of recession fear and the sub prime write down. According to Associated Press survey, 61% of the public believe US is already into recession since 2001. Economists are worried about the reduce consumer spending and investment which would push the economy into deeper recession. >> Zaobao story >> AP story

Until the picture is clearer, I think we are not going to see any significant rally. Once some bad news is let out, the market would fall further and follow by small rebound. Picking fundamental strong company and focus on internal/Asia demand is paramount in stock investing. Consensus is everything should clear up in second quarter.

For Singapore economy, economists still forecast Singapore would be able to obtain 4% to 6% economic growth. Minister mentor Lee Kuan Yew said that Asia won't go into recession, since China and India demand is strong and SEA countries economy also perform well.

Recent big investments in the island like new MRT line, integrated resort, foreign investment in chemical industry would create jobs and business opportunities. >> Zaobao story

Pick the companies that could benefit from the changing Singapore. Those like financial, construction, hospitality and retail stock could provide investor with respectable return.