In Jan 2013, I had shared with you the Greed and Fear Index and I had warned about caution going forward. Interestingly, STI rallied for a short period of time before coming down since middle of the year. It has stayed within a range for half a year now. Last week, we have QE tapering but S&P continues to move up. Obviously, money is flowing back to US and it is clearly shown in SGD/USD exchange rate.
Today, for Christmas, I would like to share with you the latest Greed and Fear Index. Although this is benchmarked against S&P, you do have to take note that Singapore economy is really very small and open, and any crisis in US or the major economies will hit us. If you have exercised caution in 2013, please continue to do so. Risk and return is not in our favour.
Merry Christmas and Happy New Year!
