In addition to the United States, it’s really been the Asia Pacific region that’s been leading global equities. Obviously Japan has been ripping all year long. But Indonesia, Malaysia, Philippines, and Thailand have been rocking all year as well. Singapore, on the other hand, has just been consolidating sideways for almost 5 months. Until last week.
We’ve been waiting patiently for this one. In early February we were hoping it was time for the breakout. But with European and emerging markets getting slaughtered after the Super Bowl, there just weren’t enough buyers to let her rip. But that was potentially a blessing in disguise. All that it created was an even bigger base, which could lead to an even bigger breakout.
As we discussed in our end of week video, the iShares Singapore ETF finally took out that 14 level and then held it for the rest of the week. This was our line in the sand and continues to be. Here is a daily bar chart of Singapore. As long as we’re above 14, this is an area we want to be involved in.
As they say, “the bigger the base, the higher in space”. And this one is coming off a major consolidation. The dividend adjusted chart (it pays a 3.8% yield) is making all-time highs. This area of the world is hot and I think that Singapore is now trying to play catch up.
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