The stock market has been going on a see-saw ride for many months now. Just a few days ago, stock market worldwide rallied thinking that Trump will end the standoff in trade spat with China. But then on Monday, Asian markets tumbled immediately after White House economic advisor Larry Kudlow gave a clarification that the US is not likely to deal.

In view of the great uncertainty over the resolution of the ongoing trade row, economic activities will continue to slow down albeit the full impact not being felt in Singapore yet. We remain in a perilous situation. The relentless increase in interest rates by the Federal Reserve certainly does not help the current economies.

On the stock market front, it is a fallacy to think that banks will definitely benefit from a higher interest rate and that it is a good time to buy into banking stocks. Banks may not benefit at all from …