Singapore stocks performed well in the first three weeks of May this year, causing the STI to rise and hover around the 3,400 mark. There was so much optimism then and some investment analysts even predicted that the STI could go all the way to 3,700 this year. But alas, the Chief of US Federal Reserves said something and the market did their own interpretation which caused STI to go down, and down till the STI is oversold. Unlike in the past when REITs were not affected much, this time round, due to the nature of the Federal Reserve’s statements, we see selling in the REITs as well as low inflation rates are speculated not to be continuing as they might be replaced by higher interest rates. I did a blog post earlier to say that the adage: “Sell in May and Go Away” was not relevant to May this ......
