To The Moon

🌟🌟🌟For years, the loudest voices in investing told us that true wealth could only be found by chasing volatile overvalued tech hype in the US.  But as a long term investor in Singapore's banking giants - $DBS(D05.SI)$  $OCBC Bank(O39.SI)$  and $UOB(U11.SI)$  I always believed in a different philosophy.  I chose stability, compounding dividends and the rock solid economic foundation of a global safe haven in Singapore.

On a remarkable day when the US tech market experienced a brutal selloff, my patience and conviction were vindicated.  While global markets tanked, Singapore's big 3 banks defied gravity, surging together to hit spectacular record highs.

Experiencing this milestone is a reminder of why long term fundamental investing wins the race.

The 3 Core Catalysts Driving the Surge

Singapore's financial giants are riding a perfect macro economic storm:

Interest Rates are Staying Higher for Longer:  Earlier fears that rapid rate cuts would crush bank profit margins have evaporated.  With the US Federal Reserve maintaining higher interest rates, these banks continue to rake in massive net interest income.

The Global Wealth Management Boom:  Wealthy families and global funds are aggressively shifting capital out of volatile markets and into Singapore's trusted neutral financial ecosystem.  This has triggered an unprecedented explosion in fee income for these 3 big banks.

The Sovereign Value Up Tailwind: Singapore government backed Equity Market Development Program or EQDP is actively channelling steady retail and institutional fund flows directly into high quality dividend paying domestic equities.

How New Investors Can Capture This Move

For everyday investors especially new ones, trying to pick or time individual bank stocks at all time highs can feel intimidating.  Fortunately there is a simpler and safer gateway: $SS SPDR STI ETF(ES3.SI)$  

Because the big 3 local banks collectively make up about 50% of the entire STI Index, buying this ETF effectively makes you an owner of Singapore's banking engine.  It also allows you to pocket a resilient dividend yield of 3.4%, comfortably beating inflation rates and tiny bank interest rates.  Thus protecting your capital via instant diversification.

Concluding Thoughts 

Whether you are holding individual shares or building your wealth through the STI ETF, we are living through a golden era for Singapore banks.

For the patient investor the lesson is clear: While the rest of the world chases volatility, we will gladly sit back, enjoy our rising dividends and watch our capital compound on the safest rock in South East Asia.

@Tiger_SG  @TigerStars  @Tiger_comments