Believe in the bounce, says Morgan Stanley

TWO weeks ago, this column pointed out that the Straits Times Index had at the time lost exactly 20 per cent from its high for the year and since a loss of that magnitude fits the definition of a bear market, the local market may have entered classic bear territory.

However, the conclusion back then was "the Singapore market may be on the brink of entering a bear market, but it's not likely to stay there for too long", an assessment that has proved accurate, given the large bounce enjoyed since then.

A rising Wall Street and a stable China have been largely responsible for that rebound which begs the question - will it continue?