It has been a volatile month of May so far which is rather unsurprising given the ‘sell in May’ syndrome as well as the SG Markets has been 1 of the better performer this year.

With the heightened Phrase 2 announcement at about 1pm on 14 May 2021, the STI responded by tanking around 2+ % from 3114 to 3032. However, in the following week it has recovered to 3114. Seemingly the impact of the heightened Phrase 2 seems to have negligent impact on the STI.

How should we position the portfolio moving forward?

Sectors to avoid (Ranked according to my own thoughts)

1) Aviation

2) Hotels

3) F&B Services

4) Banks

Aviation – With the mutation in Covid 19 Variants and the travel bubble being postponed yet again, its rather safe to say ‘uncertainty’ is a word that the aviation industry will have to deal with and as such i am not very keen as an investor to deal with uncertainty.