To The Moon

A huge thank you to Jonathan Lo and the Tiger Brokers (Singapore) team for bringing their Q3 Markets Commentary to our investors!

Jonathan walked us through the macro landscape dominating this quarter—oil-driven rate volatility, persistent inflation, geopolitical risks, and the evolving AI cycle driving global earnings resilience. With nearly 20 years of practical trading and multi-asset experience, his insights on macro-directed long-short strategies were incredibly timely.

Read full sumarize>> Beyond the AI Hype: Positioning for Q3 Volatility, China Policy Shifts & Singapore Stability

Key Messages:

• Navigating Q3 Volatility: How Interest Rates, Oil, and Geopolitics Shape Your Portfolio

• Is the AI Trade Exhausted? Understanding Sector Rotation and Smart Capital Flows

• Beyond US Borders: Evaluating China and Singapore in a Fragmented World

Disclaimer：

The content presented herein is for educational and informational purposes only. The tickers provided by editor was only for education back up.

It does not constitute financial advice, investment recommendations, an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or financial instruments.

From Hype to Execution: What the SK Hynix Selloff Tells Us

The artificial intelligence buildout has been one of the market's dominant themes, but recent volatility—including significant selloffs in names like SK Hynix—suggests investors are reassessing the trade's risk-reward profile.

The Hyperscaler Dilemma

Major technology companies (hyperscalers) have poured enormous capital into AI infrastructure. However, a critical metric is emerging: the return on this capital expenditure. When companies spend billions on AI buildouts but the incremental cash flow generated remains uncertain, balance sheets come under scrutiny.

Investors can tracking the AI infrastructure complex by keep an eye on $VanEck Semiconductor ETF(SMH)$ and $iShares Semiconductor ETF(SOXX)$ as sentiment barometers for chip demand. For broader tech exposure, $Technology Select Sector SPDR Fund(XLK)$ captures the hyperscaler ecosystem. A widening divergence between these ETFs and the broader market often signals stress in the AI capex cycle.

Credit Markets Are Speaking: Watch Credit Default Swaps (CDS)—financial instruments that measure the cost of insuring against a company's default. When CDS spreads widen for major tech or semiconductor names, it signals debt market concern about their leverage and cash flow sustainability. This often precedes equity market volatility.

The Rotation Signal

When capital flees crowded trades like semiconductors and AI infrastructure, it doesn't sit idle—it rotates. Recent sector performance suggests money is moving toward:

• Healthcare: Defensive characteristics, stable cash flows, and demographic tailwinds
  ETF Proxy: $Health Care Select Sector SPDR Fund(XLV)$ or $Vanguard Health Care ETF(VHT)$

• Financials: Beneficiaries of higher interest rates and steepening yield curves
  ETF Proxy: $Financial Select Sector SPDR Fund(XLF)$ , $SPDR S&P Regional Banking ETF(KRE)$ for a more rate-sensitive, domestic play

• Energy: Direct beneficiary of geopolitical supply concerns and persistent demand
  ETF Proxy: $Energy Select Sector SPDR Fund(XLE)$ or $Vanguard Energy ETF(VDE)$. For oilfield services specifically, watch $VanEck Oil Services ETF(OIH)$

How to Read Sector Rankings: Track relative sector performance over 3-month and 6-month windows. When leadership shifts from growth/technology toward defensive and rate-sensitive sectors, it often indicates a broader market regime change from "risk-on" to "risk-off." You can monitor this easily by comparing the relative strength of XLK versus XLV, XLF, and XLE.

The Hype Cycle vs. Reality

Not every company adding "AI" to its name creates value. Investors should distinguish between:

• Infrastructure plays (semiconductors, data centers, networking)
  ETF Proxies: SMH, SOXX, $Global X Robotics & Artificial Intelligence ETF(BOTZ)$

• Application plays (software, services)
  ETF Proxies: $iShares Expanded Tech-Software Sector ETF(IGV)$ , $Invesco QQQ(QQQ)$

• Speculative rebranding (companies with no viable AI revenue model)

Due Diligence Checklist: Before investing in an AI-themed stock, ask: What is the path to profitability? How does the company fund its investments if credit markets tighten? Is the valuation pricing in perfection?

A Note on Defensive Positioning

If the rotation out of AI and tech deepens, consider how lower-volatility factor ETFs may perform. $iShares MSCI USA Min Vol Factor ETF(USMV)$ and $Invesco S&P 500 Low Volatility ETF(SPLV)$ historically attract flows when investors seek to reduce portfolio beta while maintaining equity exposure.

Remember: ETFs are tools for expressing a view, not guarantees of performance. Always review the underlying holdings, expense ratios, and liquidity before trading.