I haven’t been sleeping well for the past two weeks, managing only 4-5 hours of sleep on most nights.
Yesterday, I went to bed early and slept almost nine hours. When I woke up at 7am to check my mobile phone, the first thing that I saw was this:
DJI – 512.761, -4.31%
The 512 points drop is the ninth worst day for the DOW in terms of points and it has now lost more than 1300 points in two weeks.
Looks like the market is still going down although selling might be a bit overdone for the short term.
Ironically, despite all the concerns about the US debt ceiling recently, US treasuries has rallied to new highs.
The yield on the 10-year Treasury note fell to 2.42% p.a, its lowest of the year, while the yield on the 2-year Treasury note is at 0.265% p.a. One-month Treasury bill gives almost nothing at 0.008% p.a.
Oil is now hovering around US$85/barrel and I’m glad I exited all my energy positions a couple of months back.
And USD/SGD has rallied to almost 1.22 since dipping below 1.20 just a week ago.
It is times like this when holding spare cash gives you lots of comfort as you know that you will have available funds to deploy if valuations starts to become attractive. But will you?