STOCK MARKETS around the world have been falling since October 7 or 8, 2014. The Dow has shed 3.9% to 16321 while the Hang Seng has fallen 1.3% and our own FSSTI has dropped 1.5%.
In a radio interview yesterday I was asked what I felt about the "SELL OFF" - I corrected the interviewer by saying its not a SELL OFF but a long overdue correction.
Don't forget that stock markets have been in a BULL market since 2009 and a meaningful correction has been long overdue.
The VIX index which is a good indicator of uncertainty and volatility has risen and closed at 24.6 overnight.
In my latest talk at a Lim & Tan seminar about Defensive Strategies - I highlighted a number of risk factors and also told investors of a number of indicators to look out for that would trigger a correction. One of these was the VIX index and I said that once it crossed 20 - we should be alert and once it crossed 30 that would be quite negative.
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This article by Kevin Scully (left), executive chairman of NRA Capital, was recently published on