To The Moon

🌟🌟🌟July has just wrapped up a 4 month winning streak and our portfolio maybe basking in the glow of steady gains.  But August has a reputation for shaking things up.  This can be due to seasonal volatility, macro surprises and valuation fatigue which could all conspire to test our conviction.  And now, Trump's new global tariff regime is adding fresh uncertainty to the mix. 

Before the next wave hits, it is worth asking - Should we take profits, stay the course or lean into the dip with fresh capital?

Why August Could Bring a Pullback 

Even strong markets need to catch their breath.  Here are the possible reasons why August might bring a pullback :

Valuations are stretched : High multiples across sectors leave little room for error.

Seasonal volatility : August often sees thinner trading volumes and sharper moves.

Macro Catalysts : Higher inflation, central bank signals and geopolitical headlines can trigger swift reversals.

Trump Tariffs : A sweeping new tariff policy - up to 40% on some imports, is already hitting the markets. 

Momentum Fatigue : After 4 months of gains, trend following strategies may start to unwind.

Questions to Ground Our Strategy 

1.  Do we have cash ready to deploy?  A 5% to 10% dip could be a buying opportunity, but only if we are prepared.

2.  Can we bear the short term losses? If a sudden 7% drop would rattle our nerves, consider trimming our risks now.

3.  Do we have a profit taking plan?  Locking in gains or setting trailing stops can protect our upside.

Dollar Cost Averaging : Our Calm in the Storm

Rather than trying to time the perfect entry, Dollar Cost Averaging (DCA) through Tiger Brokers Auto Invest, offers a disciplined way to invest through volatility.

By investing a fixed amount at regular intervals, we smooth out market fluctuations, avoid emotional decision making and build positions gradually, especially during pullbacks. 

DCA shines brightest when anchored to solid, low cost Index ETFs such as SPLG, STI ETF and KWEB. 

Why SPLG, STI ETF and KWEB Deserve a Spot in our Strategy 

$SPDR Portfolio S&P 500 ETF(SPLG)$  tracks the S&P500 Index which represents 500 of leading US companies.  It has an ultra low expense ratio of just 0.02%.  SPLG is ideal for long term compounding.

$STI ETF(ES3.SI)$  tracks Singapore's top 30 companies.  This allows us to gain exposure to Singapore's financial, real estate and industrial sectors.  The current dividend yield is 4% which is great for income focused investors.  STI ETF is less exposed to US China trade tensions, offering regional stability.

$KraneShares CSI China Internet ETF(KWEB)$  tracks Chinese Internet Giants like Tencent, Alibaba, JD. com and Meituan.  KWEB offers great exposure to China's booming digital economy and rising middle class.  KWEB has high growth potential but comes with volatility - perfect for DCA smoothing.

Together SPLG, STI ETF and KWEB form a tri pillar strategy : US innovation, Singapore stability and China tech acceleration.  These ETFs offer built in diversification against tariff shocks.

Concluding Thoughts 

August won't just test our portfolio.  It will test our philosophy.  Reactionary traders panic when the markets turn red.  But disciplined investors?  They buy when prices are down,  dividends are yielding and conviction still holds.

Profit or Panic?  With Dollar Cost Averaging into global index ETFs like $SPDR Portfolio S&P 500 ETF(SPLG)$ $STI ETF(ES3.SI)$  and $KraneShares CSI China Internet ETF(KWEB)$ , we choose profit, without chasing performance or fearing volatility.  With Trump's tariffs reshaping the global trade map, our diversified ETF mix isn't just smart, it is strategic.  We are building a portfolio that spans continents, sectors and cycles. 

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