Oh My, A US Market Correction!
I am supposed to write about a new company today. But US Market Has Corrected Slightly Last Night! Now that more of us are vested in the US market than SG market, I assume there is a certain amount of fear within ourself. If you had entered the US market only in the last 6 months, you maybe at a loss of what to do? For a start, I had written an evergreen post on what to do during market correction in 2018 and it is still relevant today. But at this point, it could be more important to understand why this correction is happening. What Happened? This was explained in detail in a MeetKelvin Video . But if you prefer reading, I will be writing about them here. 1. Short Term Bond Yields are increasing. Basically, it seems like no one is buying the current US Treasury Bonds (aka T-Bills) . Everyone is into equity now. Thus, a lower demand in T-Bills results in lower bond prices and higher yield. 2. US Government is giving out a US$1.9 trillion stimulus again. This stimulus has to b