Amidst the war of words between Donald Trump and North Korea leader, some of you may be wondering whether one should invest in Singapore stocks now since the global financial markets may be shaped by these external macro-events. My answer to this is that for an investor, this may be the time to sell over-valued stocks and enter into stocks which are now starting to be a bargain as a result of oversold activities.

Looking at the technical chart of the STI ETF (the ETF tracks the STI which in turn provides a snapshot of the performance of the Singapore stocks markets); the 5-days-moving-average and 20-days-moving-average have already started to slope down. What is supporting the Singapore stocks markets now are the longer-term moving averages in the 50-days-moving-average, 100-days-moving-average and 200-days-moving-average. We should see whether the 50-days-moving-average will start to slope down next. And if it does, it means that …