To The Moon

🌟🌟🌟The Nasdaq 100 Index just vaulted past 21,000 and the S&P500 is basking in all time highs.  Tech stocks are on an upward momentum.  AI optimism is running hot.  The big question is - Is this the beginning of a new bull market or a sugar rush before the crash?

What Is Fueling The Rally?

Big Tech's Earnings Power : The Magnificent 7 are delivering blockbuster results, with Nvidia $NVIDIA(NVDA)$  alone now worth more than the GDP of some countries.

AI Infrastructure Boom: Hyperscalers are pouring over USD 400 billion into chips, cloud and computing, turning AI from buzzword to backbone. 

Rate Cut Hopes : With inflation cooling and unemployment nudging up, markets are pricing in a Fed rate cut by September this year.

Economic Resilience : Retail sales and consumer confidence are beating expectations, supporting a soft landing narrative.

But Risks Are Brewing 

Valuations are stretched - The S&P500 forward P/E ratio is now 22.2, well above its 10 year average of 18.4.

Tariff Tensions - A proposed 30% on EU imports could hit August 1, with retaliation threats already surfacing.

Geopolitical Flashpoints  - The Middle East and Ukraine remain violatile.  Trade negotiations with some countries like China and South Korea remain unresolved.

FOMO Frenzy - Retail investors are piling into high beta stocks such as Circle and Sharplink , raising concerns about momentum outpacing fundamentals.

What Should Investors Do?

This is the time for discipline, not drama.  Investors should :

Diversify across sectors and geographical locations. 

Trim exposure to overheated mega cap tech.

Monitor earnings closely  - $Alphabet(GOOG)$  and$Tesla Motors(TSLA)$  are up next.

Stay tactical - short term trades are tempting but long term allocation wins.

What Is My Strategy? 

I will continue to dollar cost average into Index ETFs such as SPLG $SPDR Portfolio S&P 500 ETF(SPLG)$  and $STI ETF(ES3.SI)$ , anchoring my strategy into these 2 Index ETFs :

SPLG tracks the S&P500 with ultra low fees of just 0.02%.  This offers me broad diversification across 500 US Large Cap stocks.  SPLG has a strong performance history - up 110% over 5 years.  It is my gateway to US tech innovation - the Magnificent 7 stocks and many more. 

STI ETF (ES3.SI) offers exposure to Singapore's top 30 companies.  These include the 3 big banks DBS, OCBC and UOB as well as Singtel, SGX and many more.  With a 4.14% dividend yield, low volatility and a stable currency base, STI ETF is my anchor in Asia's most resilient market. 

Together they form part of my core portfolio which balances growth with stability. 

Investing for me is all about patience and time in the markets compounding quietly.  That is how I intend to achieve my goal of FIRE - Financial Independence Retire Early. 

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