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We face one of the toughest choices every investor faces this year… Potential risks from a full-blown trade war, geopolitical tensions, war, AI bubbles… We ask ourselves: Will all these lead to a market crash? As I write this newsletter under the soft Sunday morning light, I can’t help but think about past market cycles I’ve been through -- including the 2022 tech stock crash, the COVID-19 shock. The thing is, the question that keeps us awake isn’t whether the market is going to crash or not. But what keeps us awake should be whether we continue to protect our wealth safely while being able to take advantage of opportunities, despite market crashes. What matters most is how we are going to pick good dividend stocks to accumulate our wealth for retirement. Over the last 12 years, Sheng Siong’s shares have continued to climb. Despite market cycles, this supermarket giant continues to grow its dividends and earnings year after year. In fact, it’s now earning close to S$140 million in a single year. Will Sheng Siong become a global juggernaut? Not really. Yet I find it hard to imagine a market crash will threaten Sheng Siong’s performance for at least the next decade or decades. I’m sure companies like Sheng Siong are high quality dividend growers that can continue to protect and accumulate your wealth. The reason for its success? Its ability to sell habit-forming products and services. I can’t stress enough. These businesses get customers to use their stuff again and again, that... It forms a very strong habit around the customers. Last week, I shared more about habit-forming services on my recent CNA Money Mind Interview, where I shared my thoughts on how investors can build passive income by picking good Singapore dividend stocks. Especially at market highs. Especially when during market crashes. Click here to watch my interview with CNA Money Mind Sometimes, investing can be simple. Willie Keng, CFA Founder, dividendtitan.com P.S. Like this issue? Click HERE to join other dividend investors reading my DT Compound Letter. I send my regular letters to your inbox. |
I'm a full-time investor and a former high-yield fixed income analyst. Last time, my job was to help ultra-rich clients make money from the best bond ideas. I’ve lived through bond market cycles across emerging markets. Today, I manage my mom's and my own money. This is what I’ve learnt investing so far... The AI bubble isn’t in the technology. The internet has changed our lives. Instead, the bubble is in our herding behaviour, which leads to investors pushing up prices irresponsibly. I...
Analysts love a bullish call. So when a Citi analyst put a sell call on OCBC two weeks ago, I went: “Finally someone started making sense.” Singapore banks haven’t fallen as much as I’d like. That tells me one thing: The market is treating DBS, OCBC and UOB like a riskless asset class. Even if people don’t say the word “riskless”, the market is buying Singapore banks as though it believes it’s riskless. There’s little margin of error for Singapore banks trading at market highs. Investors have...
The bond market is seeking answers. CoreWeave, a major data centre operator saw its shares hit a 52-week low. Its bonds, which were issued in June with a 9.625% yield, have dropped in price. This pushed its yield to around 15% recently. This means, any investors who are buying CoreWeave’s bonds are demanding a 15% return to compensate for its credit risk. I would say this is a canary in the coal mine for its debt-funded AI expansion. The company continues to burn enormous cash. And this data...