Looking at the long term chart of STI, it has been almost 5 years without a major correction. Bear in mind this is a liquidity driven rally and has nothing to do with fundamentals. The top of this rally, beginnig in 2009 March, looks identical to the one before the 1997/98 financial crisis. Should there be a credit crunch in the next few months, the collapse may just be a repeat of the 2007/2008 Financial Crisis. Or even worse.
Jitters in emerging markets seem to have a contagion effect. No one really knows what is going on in China’s shadow banking.
The only savior for the stock market has always been printing more money. The addiction to cheap money has already gone on for too long. Governments all over the world have been negligent and prefer to create a short term illusion instead of getting to the root of the problem.