SINGAPORE (Mar 13): Local stocks were off to a rough start in 2020. Even as the US-China trade war drags on, tensions threaten to flare in the Middle East. Then, the Covid-19 outbreak put China’s economy to a grinding halt. The subsequent spread outside China has merely added to the woes.

“We’re not out of the woods yet, and the current sell-off has finally dented investors’ ‘buy the dip’ mentality which had worked well over the past few years,” says KGI Securities analyst Joel Ng in an interview with The Edge Singapore.

“There’s definitely a higher level of risk now, and the likelihood of a global recession is at the highest level since the global financial crisis in 2008. All sectors are seeing a slowdown, and macroeconomic growth could be lower than expected,” adds Ng, citing recent growth outlook downgrades by the World Bank, International Monetary Fund (IMF) and World Trade Organisation.

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