My plans for 2025. Buy DBS, OCBC and UOB? Hoard cash for a crash?

Summary

In this video, AK shares his approach to investing and content creation. He has reduced the frequency of his content but continues to engage with his audience through the community tab. AK discusses receiving unexpected government payments, which he plans to donate to charity, and reflects on his investment strategy, focusing on cash accumulation, particularly in Singapore Savings Bonds and T-Bills. He cautions against buying stocks at high valuations and emphasizes staying invested in the market for long-term growth, while waiting for opportunities during downturns. AK also touches on Bitcoin as an insurance asset, underscoring the importance of being prepared for market shifts.

Takeaways

• 😀 AK is reducing the frequency of his content creation but continues to share updates via the community tab on YouTube.
• 😀 AK received financial support from government packages like the 'Muala' and 'Assurance' packages and plans to donate this money to charity.
• 😀 He reiterates that he is not providing financial advice but simply sharing his personal perspective on investing.
• 😀 AK has not made any new stock purchases in 2024, unlike in 2023 when he was actively adding to his investments in local banks (DBS, UOB, OCBC).
• 😀 Although stock prices of local banks have risen, AK believes they are still fairly valued and not in 'bubble' territory, though valuations are now higher.
• 😀 He warns that there is an increased risk of market downturns, and urges caution when making new investments in the stock market.
• 😀 AK is focusing on holding cash and investing in safe, low-risk instruments like Singapore Savings Bonds and T-Bills, which offer attractive yields.
• 😀 He advises against trying to time the market or waiting for a crash to invest, as predicting downturns is uncertain.
• 😀 AK emphasizes that the cost of being uninvested in the stock market is high, with missed opportunities for both capital appreciation and dividends.
• 😀 He is preparing for potential market downturns by growing his cash reserves and staying invested in low-risk assets.
• 😀 While he believes in the long-term potential of the stock market, AK suggests that investors should remain flexible and ready to adjust their strategies in response to changing market conditions.

Q & A

Why has AK reduced the frequency of his videos?

AK has reduced the frequency of his videos to focus on other areas of his life. However, he still engages with his audience through the community tab on his YouTube channel, sharing updates and posts, although sporadically.

What types of content does AK share on his community tab?

AK shares personal updates, sometimes related to financial topics, but not always investment-related. For example, he has shared updates about receiving government money packages, such as the Maula and Assurance packages.

Does AK consider his content as financial advice?

No, AK does not consider his content as financial advice. He emphasizes that he is simply sharing his personal perspectives and experiences, and he urges viewers to do their own research and make decisions based on their own findings.

What has AK been investing in during 2024?

In 2024, AK has not been buying stocks. Instead, he has focused on growing his cash position through risk-free instruments such as T-bills and Singapore Savings Bonds, which provide stable returns.

Why does AK think it's a mistake to wait for a market crash before investing?

AK believes that predicting when a market crash will happen is nearly impossible. He argues that staying on the sidelines, waiting for a crash, can be costly because it means missing out on gains, particularly in dividend income and capital appreciation.

What is AK's stance on the current valuations of local banks like DBS, UOB, and OCBC?

AK believes that the stocks of DBS, UOB, and OCBC are not overvalued but have become 'rich' in terms of their valuations. While he thinks there's still some room for growth in OCBC, he believes that most of the upside has already been realized, and the risks of a downturn are now higher.

Why does AK focus on dividends in his investment strategy?

AK focuses on dividends because his main goal is to generate income, particularly as a retiree who depends on this income for living expenses. He values the steady returns that dividends provide rather than relying on capital gains or stock price appreciation.

What is AK's approach to holding cash in 2024 and 2025?

AK has been increasing his cash position in 2024 by investing in T-bills and Singapore Savings Bonds. He plans to continue this strategy in 2025, storing cash until he sees more attractive opportunities in the stock market.

How does AK view Bitcoin in terms of his financial strategy?

AK views Bitcoin as insurance rather than an investment. He mentions owning almost a full Bitcoin, which has grown significantly in value, but he does not consider it a core part of his investment strategy. He sees it as a hedge against financial risks.

What does AK mean by 'the cost of staying on the sidelines' in investing?

The 'cost of staying on the sidelines' refers to the missed opportunities from not being invested in the market. By staying out of the market, individuals risk losing out on dividends, capital appreciation, and long-term growth, as seen with stocks like DBS, UOB, and OCBC.

What is AK's outlook for 2025 in terms of market conditions?

In 2025, AK anticipates continuing to hold cash and wait for market conditions to become more favorable. He believes that the stock market could experience a depression at some point, and he is preparing for that by maintaining liquidity to take advantage of opportunities when they arise.