The Hang Seng Index broke above the 23,000 points mark on 18 January, thanks to Donald Trump. All he did was say that the US dollar was “too strong” and “it’s killing us” and his comment drove Hong Kong stocks up.
Having experienced such a phenomenon in 1987, 1997 and 2007, many investors do have high hopes for the stock market in 2017. I think it is highly possible that the 2017 stock market can rise to unbelievable heights, but investor sentiment will ultimately determine the fate of the stock market.
China’s foreign exchange reserves had been close to 4 trillion US dollars, but it fell to around 3 trillion USD last year. The reason for such a substantial decline is that a great number of Chinese people have been exchanging their renminbi for foreign currencies.
The Hang Seng index soared on the first opening day of 2017. It met with pressures of arbitrage on the second day, but that is a natural response to its previous consecutive and significant rise and I believe that a rebound will take place soon.
On 30 December, I flew back with my family to celebrate the New Year in Singapore. The first thing I did, after I alighted from the plane, was to use the airport Wifi to check the closing price of the Hang Seng index.
Many political experts, economists and analysts missed their forecasts and predictions in 2016, which was marked by major paradigm shifts in geopolitics.
On Tuesday (13 Dec), the US Federal Open Market Committee (FOMC) began a two-day meeting on monetary policy and interest rates.
Yesterday, Hong Kong stocks could be said to have undergone a small crash. The Hang Seng Index fell heavily, because China A-shares had fallen even more heavily. The Shenzhen Growth Enterprise Index (GEI) had fallen disastrously by 5.5 percent, the Shenzhen Component Index by 4.51 percent and the Shanghai Composite Index by 2.47 percent. All of the above closed near their lowest levels.
Christmas is around the corner, and while you are busy shopping for gifts, you can shop for some good stocks in the meantime.
Lately, multiple junk stocks appear to be on a trend of upward speculation. Retail investors tend to be very affected by media reports, and they are very envious of the speculators who had bought those stocks earlier.