The first half of 2018 has come and gone. All of a sudden, the market looks gloomier now than at the start of the year. It has been hit from many fronts including the rise in US interest rate, rise in crude oil price (aka inflation), rise in protectionism with trade war looming between US and China, Europe, Canada plus others, rise in Middle East tension and apparent slowdown in China economy.
Our local market was not spared. Compared to end 2017, it has declined 6.5% and compared to the peak in early May, the drop was a staggering 10.5%. It is not as bad as the China market which officially entered into the bear last week when it lost 20% from its peak. It looks like the “10th year major correction” may happen this year, after delaying by a year. Senior investors will remember the 1997 and 2007 crisis.