My market outlook for this year will be on a few areas. The first I will touch on is the forex markets. The first half of the year will see major currencies correcting for their current trend. Example, USD is now on a trend of strengthening and so during the first half of the year we will see a short term weakening of the USD before resuming of its trend of strengthening for the rest of the year. Other major currencies will be the same. The correction should be around 300 to 500 pips. The best currency to hold is still the USD since its longer term trend is to strengthen. It will followed by GBP and JPY. The worst currency to hold I suspect will be CAD.
The local stock market of Singapore should see bullish mood for the first half of the year and may very likely end the year in a bullish note. The STI may end the year above 3500. However, real estate related stocks that deal with Singapore residential properties should not do too well. The residential property market should continue to see prices slide down.
The US stock market will most likely see its peak this year. It may break a few more highs but from there on, it may start to trend sideways or down slightly.
For long term investing, I foresee gold to trend higher for one to 3 years so it good to hold onto gold. My target for gold will be 1600 within 3 years. This is also my best pick for this year.
Please take note that all the above are just my opinion for the whole year so it should not be taken as an advice to trade, especially for short term traders.