5 Smart Money Habits to Build Financial Success in the Year of the Horse

Market Overview - The Singapore market is experiencing significant momentum, with DBS Group Holdings Ltd trading at record highs near S$60 and Singapore Exchange Ltd surpassing a historic peak of S$19.20 [1] - The Straits Times Index has risen from 3,372 to nearly 5,000 over the past year, indicating strong market performance [1] Investment Strategies - Avoid FOMO: Investors are advised not to chase stocks that are hitting new highs, but rather to assess whether they are buying strong businesses or merely reacting to price increases [3] - Reinvest Dividends: Emphasizing the importance of reinvesting dividends from blue-chip stocks and REITs to benefit from compounding returns [5][6] - Review Gearing: Investors should regularly check the gearing ratio of their holdings, as companies with lower debt levels have more flexibility and resilience in changing market conditions [7][8] - Dollar-Cost Averaging: A consistent investment strategy, such as dollar-cost averaging, helps mitigate the emotional aspects of investing during market fluctuations [9][10] - Long-Term Patience: Maintaining investments during market volatility is crucial, as successful investing relies on time in the market rather than timing the market [11][12] Key Takeaway - The Year of the Red Fire Horse presents opportunities, but a disciplined approach focusing on reinvestment, balance sheet strength, and patience is essential for long-term investment success [13]