Why I think this is a correction

STI just dropped 45 pts, but I am not panicking. Here's why:

1. The recovery is still on its first legs. Positive outlook for commodity stocks.

2. Consumer spending levels should pick up.

3. Core inflation is falling.

4. Corporate earnings is starting to get better, and should continue to improve.

5. Abundance of cash on the sidelines.

Therefore, any pullback should be brief and shallow.

Over the longer term, however,

1. Interest rates will eventually rise

2. US $ will counter rally.

3. An end to reflationary policies.

However, ar present, things remain rosy for the stocks market.

My plan:

Buy the 2nd tranche when prices have fallen to appropriate levels.