MARKET TRENDS (15th Oct 2018) The markets have finally seen the last domino (US markets) starting to converge towards the dark side. Will this be the perfect storm and should we head to safe shelters? Most analysts consensus are this is more of a blip than a “This is it” situation. Listen to what DBS CIO have to say of the recent market weakness through this link. To sum up, DBS feels that the valuation is still reasonable which is at 16x PE for S&P and there is no runaway inflation which are the major signs of an overheated stock market. Therefore, their view is that this is more of a healthy correction. Moreover, corporate earnings and economic data are still showing decent numbers. However, based on my earlier post, valuation metrics such as the Cyclically Adjusted Price Earnings Ratio and Market Capitalisation to GDP are at extreme levels ......