Hi ,
Markets have been busy again, so I’ve put together a quick update to help you cut through the noise and stay focused on the big picture.
Market Snapshot
The world’s two biggest economies, the U.S. and China, recently agreed to a one-year trade truce. This pause means fewer new tariffs and restrictions for now, which helps calm global markets.
But beneath the surface, things are still changing. China is learning to handle trade tensions better, and the US is becoming more focused on protecting itself by raising import taxes and tightening its borders.
Meanwhile, the US stock market has been on fire this year, rising almost 40% since the April lows, mainly because of excitement about artificial intelligence (AI).
Zest’s Take
What we’re seeing now is a world with two stories happening at once:
- U.S. market looks strong, but its prices are already very high.
- Other parts of the world like Asia and Europe are quietly catching up as trade patterns shift.
International Stocks Have Outperformed This Year
That’s why I continue to believe in diversification, spreading your investments across different countries and types of funds. It helps protect your wealth when one area slows down.
What’s Driving the Market
- Trade Shifts: China’s exports to other countries are growing, even though it trades less with the US.
- AI Boom: Tech companies like Nvidia are leading the stock rally, but prices are getting expensive.
- 2026 Changes: A few new things may shape the next year:
- “Trump Accounts” — a new savings plan for children, where the government gives a $1,000 start-up bonus.
- Digital or “tokenized” stocks — the US may soon allow stocks to trade using blockchain, like crypto.
- Looser trading rules — regulators may make it easier for smaller investors to trade more often.
What We Are Watching Next
- Whether the US and China will extend their trade peace beyond 2026.
- Whether inflation will stay high, making it harder for interest rates to come down.
- If the AI stock rally keeps going or starts to cool off.
- New ways for investors to save or trade as 2026 policies roll out.
What This Means for You
For most Singapore-based investors, these global changes are a reminder that no single market stays on top forever. The U.S. remains strong, but high prices and policy shifts mean it’s wise not to rely only on one country.
Here is Vanguard's Outlook for Financial Markets
Your current portfolio’s mix of Singapore, Asia, and global funds helps you stay balanced, capturing growth from rising Asian economies while still benefiting from opportunities in developed markets.
If you’ve been keeping extra cash in the bank or in T-Bills, this may be a good time to explore income-generating options such as bond or dividend funds that can provide steady returns while interest rates stabilise.
Investing is like brewing coffee the aroma doesn’t come instantly, but patience brings out the richness.
The world is changing fast trade rules, technology, even how stocks are traded but the principles of good investing remain the same: stay diversified, stay invested, and let time do its magic.
Warm regards,
Zest Chia
Executive Wealth Consultant
Infinity Financial Advisory
☕ Brewing Financial Freedom, One Kopi Chat at a Time
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