Dear readers, this week, the spotlight on stock markets will center around the recent downturn in the US stock markets, largely influenced by concerns surrounding US President Trump’s tariff policies. The ripple effects of the US markets are felt globally, and as such, stock markets in various regions, including Singapore, are also experiencing these fluctuations.
I have observed a notable trend in the rally of global markets over the past year. In Singapore, the impressive performance of the Straits Times Index—our benchmark for stock markets—has been significantly bolstered by the strong showing of local banking giants such as DBS, OCBC, and UOB.
In contrast, the rally in the US stock markets has been primarily driven by technology stocks. As we witness a downturn in stock markets, it’s essential to recognize that these tech and banking stocks may need to adjust to more realistic valuations.
The focus within the Singapore stock markets has recently shifted from initiatives proposed by the Review Committee aimed at rejuvenating our local bourse to the ongoing CDL saga. Now, it is time to redirect our attention to the broader macroeconomic landscape.
Ultimately, however, what matters most for investors is the performance of their investment portfolios and how they navigate the challenges posed by varying market conditions. It is crucial for investors to stay informed and adaptable as they make decisions that impact their financial futures.