Market View: Markets Movements Post Global Rout

Last week, on 06 August 2024, I was invited for a short interview on Money FM 89.3, Singapore’s first business and personal finance radio station, by Chua Tian Tian, the co-host of the station’s The Evening Runway show. We discussed a number of topics, including:

  • The Singapore stock market’s recovery after a big fall in the Nikkei on 05 August 2024 that sparked a rout in global financial markets (Hints: What will ultimately matter for the Straits Times Index’s long-term recovery will be the underlying business-health of its three major constituents – the banks DBS, OCBC, and UOB – which collectively account for around half of the index; based on their latest results, “steady as it goes” sounds like an apt description of what’s going on with the banks)
  • How sustainable is the optimism surrounding pure-play US office REITs in Singapore’s stock market on expectations that the US Federal Reserve would cut interest rates (Hint: Singapore-listed US office REITs are facing two problems – low occupancies and high borrowing costs – and the Federal Reserve’s actions may at best alleviate only one of the problems, that of high borrowing costs)
  • My read on the Bank of Japan’s recent monetary policy tightening that triggered a historic plunge in Japanese stocks and contributed to global market turmoil (Hint: Big declines in stocks are bound to happen so it’s important to be investing in a way that allows us to stay in the game; meanwhile, the really good days in stocks tend to cluster with the really bad days in stocks, and if we miss just a small handful of the really good days, our long-term returns will be dramatically affected)
  • The impact of NVIDIA’s reported delays in the development of its latest chips to the company’s competitive edge (Hint: It’s unlikely for the delay to result in the loss of any competitive edge because NVIDIA’s real competitive edge lies in the familiarity that most of the AI community has with the company’s CUDA software platform)

You can check out the recording of our conversation below!


Disclaimer: The Good Investors is the personal investing blog of two simple guys who are passionate about educating Singaporeans about stock market investing. By using this Site, you specifically agree that none of the information provided constitutes financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. I have a vested interest in Meta Platforms. Holdings are subject to change at any time.