The stock market has been a roller coaster lately—one moment, it's rallying, and the next, it's taking a nosedive. With economic uncertainties, inflation concerns, and geopolitical tensions (thanks to Donald Trump), it's easy to feel overwhelmed. So, what am I doing in times of uncertainty? Here’s my strategy:

1. Building Up My Safety Net

In times of uncertainty, having a secure financial safety net is crucial. Market volatility is normal, and panicking by selling at every dip would only sabotage my long-term returns. Instead, I remind myself that I’m investing for the long haul—years, not months. Time in the market beats timing the market.

But this is only possible if I have a solid safety net that can cushion the impact of market downturns. Here’s what I rely on:

CPF – My CPF serves as a strong foundation for long-term financial security, ensuring I have funds set aside for retirement.

Singapore Savings Bonds (SSB) – I took advantage of the higher interest rates over the past few years to build up close to a year worth of emergencies funds in SSB holdings.

Having these in place gives me peace of mind, allowing me to stay invested without worrying about short-term fluctuations.

2. Building Up My War Chest for Market Opportunities

Having cash on hand is a superpower in uncertain markets. It allows me to:

Buy stocks when opportunities arise

Avoid panic selling due to financial stress

Sleep better at night knowing I have a buffer

To strengthen my war chest, I’m actively working on both my main income and side income streams. The more I earn and save now, the more capital I’ll have to deploy when opportunities present themselves.

3. Waiting Patiently

Patience is key in investing. Right now, I’m waiting for key buying opportunities—specifically, in the S&P 500, STI Index, and some Singapore blue chips on my watch list.

When that happens, I plan to take gradual bites into the market, similar to what I did during the COVID-19 crash. As much as I’d love to catch the absolute bottom, I know that’s nearly impossible. Instead, my approach is to average down my buying:

Buy some on the first dip

Buy more if the market continues to decline

Keep adding in stages as opportunities arise

Back in 2020, I took more than 20 bite-sized purchases into the STI as the market dropped. That disciplined approach paid off in the long run, and I plan to follow a similar strategy this time.

Final Thoughts

I don’t know what the market will do tomorrow, next week, or even next month. But by keeping a long-term mindset, staying financially prepared, and being patient, I’m confident I’ll come out ahead. Market uncertainty isn’t something to fear—it’s an opportunity for disciplined investors to thrive.

What about you? How are you managing your investments in this volatile market?

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