Your End-of-Year Investment Checklist: 5 Things to Do Now

Core Insights - The article emphasizes the importance of reviewing investment portfolios at the end of the year to reassess goals and position for the upcoming year, particularly in a volatile market with potential falling interest rates [1][14]. Group 1: Portfolio Performance Review - Investors should analyze their portfolio performance over the past year, comparing it with benchmarks like the Straits Times Index, which increased by 20.8%, and the MSCI World Index, which rose by 18.4% [3]. - Identifying top performers and understanding the macro- and micro-factors affecting their future performance is crucial [4]. - Underperforming stocks should be evaluated for their balance sheets and potential for recovery, ensuring a diversified allocation across sectors such as REITs, technology, consumer, and financials [4]. Group 2: Rebalancing Strategy - Significant market movements in 2025 necessitate a review of target allocations, as stocks like SBS Transit Ltd, DBS Group Holdings Ltd, and CapitaLand Integrated Commercial Trust have seen YTD increases of 29.1%, 26.5%, and 20.2% respectively [5][6]. - Adjustments should be made to align with risk profiles, particularly in sectors like REITs and banks that may benefit from interest rate cuts [6][7]. Group 3: Dividend Income Assessment - The Singapore market is favorable for dividend investing, which is a significant component of returns for many investors [8]. - Companies should be assessed for solid earnings, cash flow, and histories of increasing dividend payouts, focusing on indicators like dividend-payout ratios and leverage levels [9][10]. Group 4: Identifying New Opportunities - Potential Fed rate cuts in 2026 may create opportunities in sectors such as REITs, healthcare, technology infrastructure, and travel [11]. - Quality companies with promising outlooks should be identified, along with global opportunities in the US tech sector [11]. Group 5: Financial Goals and Investment Plan - Life changes often necessitate a reassessment of financial goals, requiring adjustments in investment contributions and emergency funds [12]. - Setting clear targets for retirement and long-term investments is essential for a flexible investment strategy [13].