The headline risk just became a reality for now. With the Middle East, most notably Libya, dominating the headlines and continued local unrest at the state level.

S&P 500, Standard & Poor’s 500 Index sank the most since August, down 2.05% to 1315.44

The Straits Times index lost 1.68% to 3019.12

It is interesting to note the divergence between STI and S&P 500 for the past 3 months as show below and how long would it last

STI vs S&P 500 (Source: Bloomberg)

VIX, the Chicago Board Options Exchange Volatility Index, rose 27% to 12-week high of 20.80. The cautious level has definitely gone up

2011-02-22-VIX (Source: StockCharts)


Crude Oil (April contract) surged above $95 a barrel yesterday boosted by rising violence in Libya, a member of the OPEC.

Gold has regain its 1,400 ground as investors are seeking safe asset again.


Copper (May contract) slumped below $4.34 a pound pressured by declining stock markets.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}