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It’s all relative

Chew Sutat
Chew Sutat2/10/2022 03:33 PM GMT+08  • 9 min read
It’s all relative
Right now in Singapore, the tide is rising, and I choose to go along with it.
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As we entered into the year of the Tiger, a curious phenomenon appeared to be brewing in the market — and I am not referring to the hops in Tiger Beer we drink when visiting relatives (up to five visitors a day per household). Neither am I referring to the tea we drink to “wash away” the copious amounts of festive snacking.

Rather, it is the US market: The awe-inspiring, all-powering hoover that has been sucking in capital from across the world for several years. This mighty bull has started to falter.

This in itself is not new, as this column had been pointing out. The “rotation to reality”, which started in the second quarter last year, had already left the Covid-19 rally in tech stocks reeling. At the more fantastical ends of meme stocks, Cathay Wood’s Ark Innovation ETF, components of the Goldman Sachs non-profitable tech stock index and the leading names of China tech labouring from Xi Jinping’s “common prosperity” moderations — they have all corrected 50%–70%. Over-inflated de-spacs in the US, encapsulated by one too close to home Grab Holdings, traded as low as US$5 ($6.73) — more than half below its US$11 debut — are struggling to find their footing.

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