When the stock markets globally went south during 2008, sparked by the Lehman Brothers saga, global stocks markets went south as a result. The US delivered a solution which equated to money printing via Quantitative Easing. After these rounds of money printing, the US stocks markets seem okay now, hence the Federal Reserves may scale back on its Quantitative Easing program and this causes investors to pull out their investments and sell their stocks, driving the stock markets regionally and globally south.
Already, Singapore stocks have headed south, a reaction from investors that the US may really scale back on its money-printing stimulus. It is just the market opinion that the Quantitative Easing may be scaled back but that is already enough to cause the STI to head south by around 2%. The question now is how will the STI behave should the US Federal Reserves really decides to scale ......
