The US Federal Reserves will meet next week to discuss the Quantitative Easing (QE). Ben Bernanke, the Chairman of the Federal Reserves said on 19 June 13 that if the incoming data are broadly consistent with his committee’s forecast, his committee currently anticipates that it would be appropriate to moderate the monthly pace of bond purchases (currently running at US$85bln a month) later this year (2013) and if the subsequent data remains broadly aligned with their current expectations for the US economy, his committee would continue to reduce the pace of purchases in measured steps.

I believe that Singapore Stocks will head south first pending the announcement of the decision of the Federal Reserves. Should the Federal Reserves announces what is widely anticipated: the commencement of the tapering of the Quantitative Easing, I believe that Singapore stocks will head south though the effect may not be as comparable with that …