Correction For STI Next Week

This coming week seems to be a slight correction week, although unlikely to be a major correction as that in January when STI corrected by 8.6%. It could offer buying opportunities for investors who have missed out the recent bull run. A sufficient pullback would offer the market and its inidividual stocks the potential to grow. I would however advise caution and shorter term investing as the year of 2010 would be marred by pullbacks and uncertainty.

I would include commodity stocks and shipping in my portfolio that are closely correlated with the global economic growth. However, this is based on the assumption that global economies do not experience any double dip or any stagnation in growth. At least for Singapore, this seems unlikely with the projected GDP growth of 7%-9%. How global economies is going to tighten their monetary policies would also be an interesting topic to look out for.

Picks next week could include Nobel at around 3.00, NOL at 1,93 would be a tempting buy. Never to also forget diversification of the portfolio and minimize the risk that any individual stock could bring.