Correction in the Singapore stockmarket

Dear Mr. Tan,

The STI is once again in a correction. It seems to be heading towards the Aug lows again. Do you foresee the correction to approach Aug lows or do you think it will actually go below that?
Lastly, do you foresee a uptrend in the near future?

REPLY:

It seems that the sub-prime and credit problem in America is quite serious. There is also the possibility of a recession. The STI may reach 3000 or even lower.

It is difficult to pick the market bottom. If you are investing for the long term, it may be all right to start accumulating at 3,300. You can do it over several tranches.