STI, Banks, and the Psychology of Profit: A Portfolio Chat Turned Reflection
Over the weekend, our Telegram chat lit up with reflections on the market's recent push toward the 4,000 mark — largely powered by non-banks — and the strategic return of banks to lead the charge. Some joked: “Is this the big boys’ plan? Push with non-banks first, then let banks take the wheel again?”
Behind the humor, a few truths emerged.
Banks: Bedrock of Stability
Banks remain the cornerstone of Singapore's market — net profit leaders and closely aligned with government policy. As one member put it, "Nothing will be allowed to rock them." Even amidst inflation and market jitters, they remain resilient — and attractively valued.
The Case for Regional Growth
One interesting idea floated: to really grow, SGX needs to integrate more deeply with other Southeast Asian exchanges — and allow more access to our listed giants from neighboring investors. The logic: We already have the region’s largest net income earners; let others buy in too.
Valuation, Rebalancing & Portfolio Philosophy
As portfolios hit all-time highs (ATH), some members talked about trimming exposure. One shared being over 50% allocated to DBS — not out of fear, but for balance and mental peace. “You wait until stress to rebalance? Too late liao.”
The group revisited the ever-relevant tension between max returns and quality of life. “If I wanted max returns, I wouldn’t have retired early,” said another. “Family, siblings, parents — then me.”
Rebalancing wasn’t about fear. It was about discipline and maintaining the ability to act when others panic. Or as someone quoted Buffett: “Risk comes from not knowing what you’re doing.”
Volatility: Friend or Foe?
We all love our winners. But what happens when markets fall 30–50% like during the GFC? Even Buffett’s Berkshire Hathaway dropped 50% — three times. It’s not just about knowing, it’s about surviving. Having the mental stamina to click “Buy” when others are fleeing.
As one put it:
“Everyone can have education, knowledge, and experience. But without mental strength, you won’t click the button.”
Closing Thought: Leave Some on the Table
Taking profit isn’t weakness — it’s strategic. You leave some shares for others to buy. Let the stock rise further. After all, "Elon never shared much of his profits, so he gets a lot of green eyes. Google, Microsoft, Meta — their founders hold much less now."
Let others win too. It keeps the market moving forward.
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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.
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