Dear all

STI has closed at 3,420, in line with my view that STI’s chart continues to be bullish (refer to my technical write-up on STI HERE), despite the elevated RSI.

1. Equities – still favour over bonds over 3-5 year time frame but…

Personally, notwithstanding the market rally, I believe that over the long term, equities are still likely to outperform bonds and cash. Having said that, I am not telling all my clients to plough everything into stocks NOW, given that in the near term, there may not be significant catalysts to push the market higher by 5-10%. This is because

a) Most companies have already reported results either in Singapore or U.S. As a result, there may not be sufficient catalysts to push the stocks significantly higher;

b) Most markets have generated phenomenal year to date (“YTD”) returns this year. Hang Seng, STI and …