Rate Cut Decision: How 25 or 50 BPS Could Shake the Stock Market https://www.nasdaq.com/articles/rate-cut-decision-how-25-or-50-bps-could-shake-stock-market
Remarks: Tonight is FOMC meeting on Interest Rate decision, and currently the whole world is expecting a possible rate cut to be announced. But there's arguement arising now, is whether the drop is 25 or 50 basis points. The followings is my 2-cents worth on the coming market movement after tonight.
Since the Fed Chair Powell affirmed the market 3 weeks ago, saying "Time has come", the markets had been speculating and pushing our SG market hit record high of 3597.95 points today. And currently, there's seem having a profit-taking session going on in the market. Hence, we can't rule out the fact that markets may sell on news after FOMC meeting, since the oil price is now rising ahead of the U.S. interest rate decision tonight. In fact, we can see Keppel and Sembcorp Ind are rebounded from support recently.
Anyway, I am reckoning that the market may pull back for this week after FOMC meeting, but next week, the stock markets may come back for good again in the last week of September. And except bank shares (you may consider to sell half and hold half if you have stocks on hand), investors can consider to profit take latest by the first week of October. I think there's a possible correction in the mid of Oct, so investors can play safe of holding more cash on hand.
For your reading:
Revitalising Singapore equities market ‘not an easy task’, says Chee Hong Tat
Comments