STI has been a severe disappointment ever since US climbed from the lows of 23 March 2020. However, the reasons behind this weakness is understandable because Singapore’s market is way smaller than the US’s market. Additionally, Singapore’s index is weighted heavily on companies such as banks, telecom and real estate businesses. The value of banks (more than 35% of STI) is significantly lower when interest rates stay low to cushion the blow of the pandemic. As such, we are currently experience a prolonged horizontal consolidation phase as our interest rates continues to stay low until more business are able to get back on their own feet. In this week’s post, we will be diving deeper into issues related SG’s recovery in the coming months and why is STI not experiencing the same rally as the US....