Dear readers,

It’s been a few months since my last blog update — but rest assured, it hasn’t been quiet on my end. I’ve been actively engaging in one-on-one meetings with C-suite executives from listed companies to gain deeper insights into their business models, growth strategies, and outlook.

These direct conversations give me valuable, on-the-ground perspectives that help shape my market views and stock ideas I share with my clients.

If you’d like to stay updated on my market thoughts and access more real-time insights, feel free to connect with me on LinkedIn HERE.

More updates are on the way — stay tuned!

 

Let’s dive straight to the gist of my write-up today

US markets closed sharply lower on Friday as renewed US-China trade tensions and hawkish remarks from Fed Chair Powell rattled investors.

• Dow Jones fell over 2,200 points (-5.5%), entering correction territory
• S&P 500 dropped almost 6%, marking its worst week since 2020
• Nasdaq plunged 8%, closing in bear market territory

China’s move to impose 34% tariffs on US goods from April 10 — in retaliation to US tariffs — stoked fears of a deeper trade war. Powell’s warning of higher inflation and slower growth further weighed on sentiment.

 

What should you do with your portfolio now?

The recent sharp decline in global markets has understandably raised concerns. What’s the best move now? The answer depends on a myriad of factors such as your investment horizon, market outlook, risk profile, and overall strategy.

 

Here are four common approaches, each suited for different investor mindsets:

A) Stay the course (Status Quo)

If your portfolio is well-diversified and aligned with your long-term goals, doing nothing may be the best strategy. This approach works for long-term investors who are not easily swayed by short-term volatility.

B) Reduce exposure (De-risk)

For those who are risk-averse or concerned about further downside, trimming positions or shifting to cash can preserve capital. This may be suitable for investors nearing a key financial milestone or with low risk tolerance.

Actionable idea

Relook at your portfolio; consider trimming stocks with the weakest fundamentals whose recovery may not mirror that of your other stocks over time.

C) Reshape your portfolio (Rotation Strategy)

Instead of significantly increasing your equity exposure, you can consider switching out weaker stocks for higher-quality or more resilient names. This strategy can enhance your portfolio’s risk-reward profile while staying invested.

Actionable idea

Follow point B above.

D) Buy the dip (Opportunistic)

If you believe this slump is temporary and markets will eventually recover, this is an opportunity to accumulate quality stocks at lower valuations. Ideal for investors with strong conviction, surplus cash, a longer investment horizon and a strong grasp of risk.

But what if you wish to increase your equity exposure without deploying too much additional cash?

Actionable idea – Using margin financing

When used prudently, leverage can be a powerful tool to enhance returns. While it’s true that leverage magnifies both gains and losses, managing it carefully allows you to benefit from market opportunities without overextending yourself.

One potential solution is the CGS International Margin Account. Unlike CFDs, margin accounts can be funded using stocks as collateral. For example:

• A blue-chip portfolio valued at S$300K can potentially secure a credit line of up to S$750K (based on 2.5x collateral value).
• With S$100K in cash, you could gain up to S$350K in buying power.

Why CGSI Margin Financing Stands Out:

Floating Interest Rate: CGSI is one of the few brokers (if not the only one) offering floating interest rates (pegged to 3M SORA + spread). As of 4 Apr, the net financing rate for Grade A Singapore shares is around 3.79%. (The dividend yield for many blue chip stocks is easily above 5%). If rates decline, your financing cost may reduce further.

Extensive Marginable List: Trade across SGX, HKSE, Bursa, and US markets with one of the most comprehensive lists of marginable stocks.

Customised Support: Hold a portfolio of small- or mid-cap stocks that aren’t currently marginable? Let’s discuss – we may be able to work something out.

 

Want to Know More?

For margin account details, click HERE.

To open an account or explore your options, feel free to email me at ernestlim15@gmail.com.

Extra Value for Clients:

My clients regularly receive:

• A proprietary compilation of SG-listed stocks ranked by total potential return (using Bloomberg data).
• Exclusive notes and insights after my 1-on-1 meetings with C-suite leaders – deeper than what I share on LinkedIn.

Of course, every investor is different. Always assess your own financial situation and risk appetite before making investment decisions. I also hasten to add that clients will still need to do their own due diligence as everybody is different with different individual circumstances.

Lastly, feel free to add me on LinkedIn HERE for more regular market updates and company insights.

 

Conclusion

As always, the right approach depends on your individual circumstances. Furthermore, regardless of which approach you take, it is a good practice to relook at your portfolio regularly as market and specific company developments evolve over time.

 

Disclaimer

Please refer to the disclaimer HERE