What goes up must come down. It’s either sooner or later.
The stock market and property market have been booming lately. Some of us may have made some money, while others may be regretting about not entering the market earlier.
Depending on your market positions, a downturn may be good news to you.
If news headlines are dependable, here are some recent “signs” of the imminent downturn:
- Business Times reported 2 days ago that Lee Shau Kee, a significant shareholder of the Suntec Real Estate Investment Trust, has sold his entire stake in Suntec Reit. He got back more than $150 million. And Suntec Reit dropped 4.4%.
- Carl Icahn, a famous corporate raider, claimed that private equity has peaked. Cheap credit does not come as easily as before. Though there’s still money to be made in private equity, it’s much harder now. As cheap credit is also used to finance many purchases in properties and stock markets, is this a sign that these other markets have also peaked?
- Today’s Sunday Times screamed “Is it time to sell?”, citing Citigroup Research’s call to sell Singapore stocks and buy Taiwan stocks.
Are these signs of the imminent downturn?