I can't resist myself. I can't resist shouting that the Singapore small caps market is dangerous now. It has risen 60+% last year and now, it has risen 82% year-to-date.
Currently many small caps stocks are moving upwards, especially those that have some properties element. Also, small caps with funny fundamentals are also starting to move. I think the small cap market is showing quite an exuberance now, similar to the China Spore-listed stocks at start of 2006.
History almost never repeats. But most servere corrections come after a period of extreme exuberance. We are currently in exuberance stage, perhaps in extreme exuberance stage. I don't know. Likewise, I do not know when the small caps market may crash or correct.
But my guess is someday sometime the crash or correction will come. The only question is time.
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