The world is slowly limping out of its year-long economic slump. The IMF and the OECD have said as much. While their forecasts differ slightly, they both expect global economies to grow between 5.5 and 4.2 per cent, respectively, this year. But stock-market investors shouldn’t rush to book the lion dancers just yet. Caution is still the order of the day.
When an economy is doing well, many companies would do well, too. It stands to reason. If we see the Singapore economy firing on all cylinders, we can assume that many local companies will be making healthy profits. And we could be right.
What’s more, our jobs would be safe, and our paycheques should arrive on time. And who knows, we might even be in line for a decent bonus at the end of the year. It is only natural to also assume that households will feel more confident in an expanding economy....