After years of chasing high-growth assets and speculative trends, the focus has shifted to quality, durability, and resilience. It is not just about growth, but sustainable growth, backed by strong fundamentals and thoughtful risk management. In times like these, investors want to know where to invest and how to invest with clarity and confidence.
Lessons from the past: Resilience in crisis
Over decades of navigating market cycles, we have seen financial markets weather repeated shocks, leaving us with important lessons. During the dot-com bubble of the late 1990s, excessive speculation led to a painful correction. The Nasdaq Composite Index fell nearly 78%, and the S&P 500 dropped around 49% from March 2000 to October 2002. The fallout triggered widespread layoffs in the technology sector and took years for both the market and investor confidence to recover fully.
The 2008 Global Financial Crisis (GFC) was sparked by the collapse of the US housing market and a ballooning subprime mortgage bubble. At its core were excessive leverage in financial institutions, poor risk management, and a misplaced belief that residential property was a “safe” asset. The result was a global financial meltdown that reshaped how we think about systemic risk.
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Fast forward to 2020, the Covid-19 pandemic delivered an unprecedented shock. Countries locked down overnight, and entire industries were brought to a standstill. Between February and March 2020, indices like the MSCI World Index and S&P 500 fell by over 30%, while the Volatility Index (VIX) surged to above 80, levels last seen during the GFC.
Looking back, these crises remind us of what truly matters. The dot-com era highlighted the importance of fundamentals and realistic valuations. The GFC reinforced the importance of transparency and prudent risk management. The Covid-19 pandemic underscored the value of diversification and resilience.
The broader market recoveries from each episode also demonstrate the importance of staying invested. Doing so takes conviction, composure, and sometimes, a strong gut.
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What’s ahead and how to seize the future
What lies ahead, and how can portfolios be positioned to weather risks while capturing emerging opportunities? We suggest the following investment ideas to help investors navigate the market cycle, without losing sleep at night.
• Singapore REITs: Real assets in a realignment
With interest rates likely peaking, income assets are regaining attention. Singapore REITs (S-REITs), which came under pressure during the rate hike cycle, are now seeing renewed attention. Retail and hospitality segments are benefiting from increased mobility and tourism, while industrial and data centre REITs continue to ride on digital demand. For income-seeking investors, S-REITs offer a blend of yield, diversification, and potential capital appreciation, especially when held within a disciplined framework.
• Liquidity matters: The quiet strength of cash alternatives
Money market funds are gaining traction from conservative investors and those adopting a barbell approach-pairing riskier assets with highly liquid, capital-preserving options. With short-term rates still elevated, well-managed money market funds offer better returns than traditional savings accounts, while maintaining daily liquidity. In today’s environment, cash is no longer just a placeholder — it is a strategic asset class in its own right.
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Besides the sectors we believe offer opportunities, it is important to recognise that investing today requires more than just financial know-how — it calls for emotional discipline. Market volatility can challenge even the most experienced investors, which is why having a trusted fund manager by your side isn’t just helpful, it’s essential.
Stability doesn’t happen by chance. It is the result of a deliberate and thoughtful strategy. Investment success today requires not just access to opportunities but the ability to curate them with care and expertise. For those seeking income, diversification, or liquidity, fund solutions managed by experienced teams with strong local insight, such as those offered by Phillip Capital Management, can play a role in anchoring a resilient portfolio.
A reliable investment partner is more than a money manager. It is akin to having a guide, a steady hand, and a steward of long-term goals. A good fund manager helps clients look beyond market noise, avoid impulsive decisions, and stay focused on what truly matters.
Jiang Xinhong is a business development executive at Phillip Capital Management
