The Straits Times Index hit a fresh peak last week, staying above the 4,300 level. Singapore’s blue-chips are climbing to new peaks, with some stocks touching all-time highs almost weekly.If you’re sitting on the sidelines watching prices soar, you might be wondering if it is too late to get in? Or worse, are we heading for a correction?Here’s the thing: not all rallies are created equal. Some shares are just being swept along by market hype. Others are climbing because the businesses behind them are genuin ...

Group 1: Visa - Visa operates one of the largest electronic payment networks globally, facilitating transactions for individuals and businesses across 200 countries and territories [3][4] - In the 2024 fiscal year, Visa processed 234 billion transactions, averaging 829 million transactions per day, showcasing its extensive network effect and competitive advantage [4] - Visa's asset-light business model allows it to earn fees from processing and network services, resulting in consistent double-digit revenue growth and strong free cash flow [5] - Management views stablecoins as an opportunity rather than a threat, aiming to integrate them into its payments ecosystem to enhance cross-border transactions [6] - Visa is considered a solid blue-chip stock due to its strong network effects, stable cash flow, and resilience in growing with the global economy [7] Group 2: Progressive - Progressive is one of the largest auto insurers in the U.S., also providing home, renters, and commercial insurance [8] - The company excels in risk management through data analytics, particularly with its usage-based insurance product, SnapShot [9] - Progressive's combined ratio has averaged 91.6% since 2002, indicating profitable underwriting well below the industry average of around 100% [10] - The company has demonstrated steady premium growth and underwriting profitability, solidifying its status as a blue-chip stock [11] Group 3: CME Group - CME Group operates the world's largest derivatives exchange, offering futures and options across various asset classes [12] - The company benefits from robust network effects and deep liquidity pools, essential for effective risk management, especially during market stress [13] - CME has achieved all-time quarterly volume records in key products, indicating strong demand and resilience in revenue from clearing and transaction fees [13][14] - The company is well-positioned to benefit from increased hedging demand and the ongoing electronification of trading amid global uncertainty [14] Group 4: Chubb - Chubb is the world's largest publicly traded property and casualty insurer, underwriting various insurance policies across multiple lines [15] - The company's scale, diversification, and underwriting expertise contribute to consistent profitability and strong cash flow generation [16] - Chubb has a long history of dividend growth, rewarding shareholders for 32 consecutive years, and is positioned to capitalize on rising global insurance demand [16][17]

Core Viewpoint - The volatility in Chinese stocks, particularly Alibaba Group, is largely driven by recent trade tariffs implemented by President Trump, but there is a potential for recovery as negotiations between China and the U.S. progress [1][2]. Company Overview - Alibaba Group (BABA) is currently priced at $117.56, with a 52-week range between $71.80 and $148.43, a dividend yield of 0.88%, and a P/E ratio of 16.99. The average price target for the stock is $154.21, indicating a potential upside of 28.19% from the current price [2][6]. Market Sentiment - The uncertainty surrounding Alibaba appears to be diminishing as negotiations between the U.S. and China have led to a clearer outlook for the stock market, particularly for stocks reliant on these forecasts [2][10]. - There has been a 16.9% decline in short interest for Alibaba over the past month, suggesting a capitulation among short sellers as the stock remains undervalued compared to its all-time high of over $315 per share [11]. Technical Analysis - A significant price gap at around $117.50 is noted, which is expected to be revisited, indicating a potential entry point for investors [4][6]. - If the stock reaches the $117.50 level, it could lead to a rapid rebound, confirming that this is a key price point for buyers [7][10]. - An alternative scenario suggests that if fear takes over, the price may drop to $111.50, which is another significant level where buyers may enter the market [8][9]. Institutional Interest - Recent quarterly reports indicate an influx of up to $4.7 billion in institutional capital into Alibaba, reflecting confidence in the stock and supporting the identified price levels [13]. Analyst Ratings - Fawne Jiang from Loop Capital has set a valuation target of up to $176 per share for Alibaba, which represents a potential increase of nearly 50% from current prices, highlighting the stock's upside potential despite negative media sentiment [12].

Group 1 - The United States is expected to maintain its status as a world power in the foreseeable future, although the ongoing trade war with China may pose long-term challenges [1] Group 2 - The analyst emphasizes a focus on dividend investing in quality blue-chip stocks, BDCs, and REITs, aiming to build investment portfolios for lower and middle-class workers [2] - The investment strategy is centered on a buy-and-hold approach, prioritizing quality over quantity, with plans to rely on dividends for retirement income in the next 5-7 years [2]