Rallying together to combat Covid-19
The past few trading days have been great for investors as the market rallied and prices surge after the crash on Monday due to the Fed passing a bill for effectively unlimited QE.
The SGX has followed the US markets moving up strongly. Today, the SGX opened down as investors probably sought to take some profit from the last 2 days of upticks. Post-lunch the SGX started to narrow its losses as investors were waiting in anticipation of the 2nd Covid-19 Budget announced by Singapore DPM Heng Swee Keat. The announcement was a welcomed one as losses for many stocks narrowed and aviation plays like SIA Engineering and SATS were up 12% and 7% respectively; SIA was trade halted today.
My current take on the markets is that we are not out of the woods yet as the coronavirus still seems to be spreading and death tolls continue to grow. Until we see a decline in actual number of cases, more recoveries, or a vaccine, things will continue to be uncertain. On the flip side, many of the measures governments around the world have instated have set us up for a quick recovery once all this is over, the question is how soon this will be over.
Key thoughts on the budget to follow, need some time to digest and think about the impact.
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