According to MM Lee, Singapore is entering a golden age. If you read the local papers today, you might be very inclined to believe this is so. The Singapore stock market opened at a record high, and Singapore’s economy has grown at an annualised rate of 12.8%. We also read stories of soaring property prices, first in the private sector, followed HDB flats going for record (and in my opinion, crazy) prices.

We have a tight labour market as well, resulting in pay increases for many people, especially white collar professionals. A large number of my friends who graduated at the same time with me are getting at least $40,000 to $50,000 per year as their starting salary. I’ve heard about bidding wars for certain kinds of professions. If you are equipped with the right kind of skills, the companies are at your mercy with regards to salary.

These are certainly good news, but, too much good news is discomforting, especially when it is getting a little too good to be true. I just get a nagging feeling that the wave is rising quickly to high levels and it is still continuing its rise. And, the higher the rise, the more powerful the crash when the wave finally breaks. To some people, I could very well be merely a wet blanket, or worse, crying wolf. However, I see no harm in being a little more cautious. It’s far better to always retain some degree of caution instead of throwing all caution to the wind.

I’ve never been caught in a hurricane, but I’ve heard from those who have been in one say that before the storm arrives, it becomes eerily calm and silent. Then, without warning, the full force of the storm hits you. I wonder if we are seeing the calm before the storm now. And, should the storm hit, it’s going to be really painful, especially for those who do not have the ability (or those who forgot) to build a proper shelter.