This is a strange period in the economy. In my latest bank statement, I can see that interest rate is lowered from 1.2% to 1.1%. With the interest rate so low, we would expect the economy to pick up strongly. Yet the real economy appears to be worsening. Personal observations in the public car parks suggest that more cars (compared to 3 months ago) are being left in the car park during working hours. It shows that Singaporeans are too cash tight to even drive to work or there is not enough work for them. This is a conundrum as the stock market trading volume has increased from $2billion in value to $3 billion and there is optimism in the market. It is strange.
No one can predict the direction of the economy. Could the market be walking on thin air?
