18 March 202118 March 2021The unwavering Fed. Which is also how central banks should act. A central bank that keeps changing its policy as and when, would only loose the trust of the people.The Fed mentioned that they would not hike interest or taper its bond buying program even though current situation does not really resonate well with this. Unemployment declining, company's earnings improving, more people getting vaccinated and the opening up of country borders around the globe. All these does not really warrant a lower interest for longer or further bond buying environment. However, during Powells speech he mentioned 2 things quite perculiar.1. Expectation on core inflation to hit 2.2% this year (higher than his target of 2%)2. GDP to rise to 6.5% in 2021. (Pre Covid growth in 201

9 March 2021.Late December last year 2020, i predicted that rech stocks were over-valued. And that we would see a short term correction in growth stocks. Money has to be parked somewhere. And hence expected a sector rotation (away from gowth into traditional assets) and country rotation (away from US and Europe into China). I also expected a support for USD and Gold. But 1 thing i did wrong was to hoard cash in SGD. i should have converted all to USD.As such i was hoarding cash, awaiting for this opportunity. At the point of writing, my portfolio consisted many income stocks. What was missing was a growth components.Fast forward today, interest yield is rising and the US is moving on with its 1.9billion in stimulus. So the big question, where would stocks go from here?K-Shape RecoveryRecal

10 March 2021.What is a Correction?According to Schwab.com, a correction is a declines by more than 10% (but less than 20%) from its most recent peak. Its called a correction because historically the drop often "corrects" and returns prices to their longer-term trend. Sustained period of correction could lead to a bear market.Last night stock market saw a frenzy of buying. Nasdaq price rose 3.69%. Bitcoin is hitting its U$ 56k Level, Meme stocks like Gamestop rose 27% and AMC rose 13%. Reason?Analyst credited yesterdays gain due to a reduction in 10 year bond yield currently at 1.528 levels( down 4.13%)In my opinion, yesterdays gain could be partially due to retail investors frenzy. Taking reference in Nasdaq and Dow Jones 5 year chart.Dow JonesNasdaq If we believe that a correction i