Singapore stock market undergoing some rough patch now, as STI has dropped about 11% from 3,640 to 3,240.

Once in a while the market will catch a cold, and this is when all the negative news will surface prominently in media. Future looks bleak and stock market seems to be falling off a cliff. Human nature, being risk averse, will start thinking about getting out of market, avoiding the downturn until the coast is clear.

But let’s remember that market always climb a wall of worries, and eventually it will recover. We were even able to survive and prosper post-2008 GFC, the worst downturn since Great Depression. It should not be different this time round.

Downturn Enables Industry Consolidation 
Very often stock market downturn precedes an industry downturn, during which the sector contracts with lower revenue and less earnings. Companies embark on cost cutting or retrenchment. The smaller companies or those …