As if last week was not bad enough for stock markets, this week was even worse.
Notable observations from the table above;
- Straits Times Index(STI) is now the number one performer among the major stock indices in 2022 year-to-date (28Jan2022)
- Shenzhen Composite Index has tumbled to almost the bottom. This has been a worse week for China's stock market than U.S.
Big bets on Chinese markets by the experts on Wall Street is going all wrong.
This week's terrible performance was driven by the Federal Reserve's intention to raise interest rates. Fed's actions affect not only the U.S market but markets all over the world, thanks to the economic superpower status of America.
Broader markets in Singapore, Hong Kong and China took a deep dive this week. Just look at the plunging numbers in the broad market this week compared to last week. China's numbers look particularly atrocious.
I will be highly selective in buying individual stocks when the broader market is so weak.
I will continue to pay attention to Hong Kong's stock market. Since 16Jan2022, I have been tip-toeing back to HK stocks. My HK portfolio did not decline as much as I expect this week. This is a good sign.
When markets are weak, don't get too aggressive in buying stocks to avoid catching falling knives. This is what I call a buy-what-lose-what market. Tread carefully and use a much stricter criteria to buy stocks in this market environment.
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