STI index is not much different from KOSPI

Banking vs memory chips A index made of extremely risk adverse boomers who see a 10% drop as the end of the world and hate owing money vs an index of people who make WSB look like warren buffett.

‘Whatever you hold also dies’ is not a strong argument against risk management as there’s a huge difference between dying 50% vs dying 20%.

My point is if there is really a systemic issue that affects the financial system to the point the three major banks die, tech, discretionary consumables, auto, oil, etc, will all die as well. You also must remember our banks are very different from american banks and the amount of money they can loan out is laughably sad. They arent investment banks also so the subprime thing is not really relevant.

Isn’t it possible that overseas competitors such as Dubai and Hong Kong will take away some of Singapore’s wealth management business and cause a downturn without affecting the rest of the economy too much!

Are you aware of just how much overseas money is flowing into hk, sg, switzerland, and how much is still trying to flow in. Dubai is also facing its own issues because surprise surprise, putting your money into the most unstable region in the world wasn’t a great idea Its not a zero sum game. The pie is growing ever larger.

Which is not necessarily a good thing as it mask problems by propping up GDP but has no effect on locals in terms of productivity and employment. Banks holding up the stocks and greatly contributing to GDP is only good for the government especially for a PM whose wife is in family office industry but not for the people.

Bro what is the topic at hand. Lol. Are we gonna talk about hdb next also? The funds coming in buy alot of private property, then locals who huat from flipping bid up hdb. Rabz sia PAP never control. But again what is the topic at hand?

Wdym, you're replying was to wealth management and overseas money flowing into a country. What is the topic at hand you're thinking about?

Bro we are in a thread. What topic do you think we are talking about.

The reply was for your comment and not the thread. Aiyooo

Singapore’s financial sector grew 4.3% in 2025, created 4,200 jobs annually over five years https://www.straitstimes.com/business/eco… Where are your sources?

In relation to the population increase or other industry growth over 5 years, how does it benchmark against them then? Might as well say nominal wage increase too. You can see a rise on the total number of death over the years too - https://smartwealth.sg/death-statistics-s…

can you take your virtue signaling elsewhere? in case you haven't noticed, this is an FI forum.

Forgot small island folks not into criticism. Hey look more jobs - https://www.reddit.com/r/singapore/s/Hrfk…

asinine

you forget that dubai got struck by iran 2 mths ago. SG is a well positioned tax heaven.

Which means the inflow of money is likely to be temporary. Once the conflict ends money may flow out of Singapore and cause losses to shareholders of the local banks

It's "possible" but overwhelmingly improbable given the current geopolitical context with Hormuz straits disruptions and Chinese downturn. Singapore attractiveness is extremely high, it might not remain at the current elevated position forever, but there are no competitors on the horizon

What an astute observation about the average singaporean investor

SGX cannot even play options. The other big difference that led to the craziness on KOSPI is that their regulations did not stop the creation of leveraged "ETFs" on just Samsung or just SK Hynix. The Korean Finance Minister publicly apologized for this. https://www.cnbc.com/2026/07/29/korea-leveraged-etf-kodex-sk-hynix.html

SGX should give us 0DTE lolol

SGX does have warrants like FVBW and V1RW for anyone looking to short DBS with leverage.

True. I have the impression that DLCs do not affect the underlying stock price. But leveraged ETFs would do so, because more people buying the leveraged ETF means that the fund manager must buy the underlying stock. But honestly not familiar with such instruments especially the DLCs. And whether the DLC airbag mechanism is better than the whole stock market circuit breaker mechanism.

Also, because of these leveraged single stock ETFs AND the news of China chips hitting the market relatively soon, a bunch of people got margin called, leading to a larger and larger sell off. Thats wild

composition is one thing, volatility is another thing. yes, STI is very financial heavy, but how much did STI grew YTD? KOSPI was up more than 100% YTD so the crash is also corresponding a lot in terms of percentage. For STI, even if it crash and gave back everything it made this year, it's still only 20%

Just because it didn’t go up doesn’t mean it can’t go down

Which part of my comment did i say sti cannot come down?

You are right. U didn’t say it cannot go down. U just assume it will only go down 20 percent max. If you think that is better, u going to be in for a fun ride when the correction starts

U need to read my comment again. I said if sti crashed AND gave back everything it made ytd, it's 20%. Never did i mention sti cannot drop more than 20% The whole context of this thread is about sti and kospi. It's not surprising for kospi to crash 50% from its high since it went up more than 100% ytd. Probability wise, i won't expect sti to crash 50% as it didn't go up that much. If it did then colour my balls surprised

Brother, If dbs has a crisis, you have bigger things to worry about than your investment account Which is why STI > Kospi. I remember an equity analyst wrote once about investment during a nuclear war. Theres only 2 outcomes 1. Either the nuclear warhead is fired, and we’re all dead anyways so money dosent matter; or 2. The nuclear warhead is never fired, so nobody dies and the market will rallu In either scenario, just put all your money into the market.

It’s possible that stiff competition from other wealth havens such as Dubai and Hong Kong will lead to an outflow of funds from Singapore and cause a downturn in the financial sector without affecting the rest of the economy too much. So the STI cannot be allowed to be too dependent on the banks for growth.

Firstly, ETFs are auto-weighted. There is no “too dependent on the banks”. There is no human deciding on the weight. Secondly, rich billionaires arent coming here to bank with DBS. DBS is for the avg joe. Rich people come singapore to set up their family office. The Family Office banks with swiss banks like Julius Baer or an American merchant bank like JP morgan If DBS blew up in a leverage crisis, the family office will be just fine.

Imo it's a good thing. Those moving money via excel just prop up GDP without actually making locals life better, no increase in productivity or employment or wage that is helpful to locals.

https://www.straitstimes.com/business/eco… Singapore’s financial sector grew 4.3% in 2025, created 4,200 jobs annually over five years

In relation to the population increase or other industry growth over 5 years, how does it benchmark against them then? Might as well say nominal wage increase too. You can see a rise on the total number of death over the years too - https://smartwealth.sg/death-statistics-s…

Then the weightage of the banks in STI will automatically go down lor. There's no decision making here. The high weightage is a result of the 3 bank stocks having high market capitalization. If their stock prices fall, then their % in the STI will fall. If you personally are uncomfortable with the high % of banks in the STI, then you either don't follow the STI, or you supplement the STI with S-REITs or individual stocks like SIA and Singtel to bring down the bank dominance. I personally use the Amova Sing Div Equity Fund where the 3 banks add up to only \~25% instead of >50%. But that means I underperformed the STI in the meantime.

It's the other way, Singapore (DBS and ocbc) manage to get the outflow of funds from Dubai and HK and is expecting even more growth in this area

No need until nuclear warhead. Covid Mar 20+ 2020, STI dropped until 2200

Putting aside probabilities and whatever your real question is. The simple answer is yes.

you also forget Korea investors are highly regarded 😂 borrow max margins and loans. our investors are all.. conservatively to the max

To be fair their PM/President told them to full port. Imo, if PAP came out and said full port DBS because its a great time to buy and we will make sure they succeed i will full port too.

Should be a criminal offence

Wait till we have 2x ETFs for them 🤣

Aside from black swan events because those are rare but banks are pretty diversified tbh

I wrote analysis on why STI is worth holding again but if I paste here, the mods will aggressively delete my link. So yea conclusion is that for sg investor, 20% of port is not a bad idea.

Basically the main risk is that all the overseas money we have been attracting (from China and middle east I guess) goes elsewhere. Then yes, STI will get cooked while your VWRA continues to boom. Hence you don’t all in on the SG banks.

too big to fail, if it does so will yours.

The banks are certainly not too big to fail. Otherwise, the other local banks in history would not have been absorbed until there are only 3 left today

Sure. If your banks only fund data ctr and chip factory build out, then you're cooked.

Expect a 50% drop in DBs share price in the future! The day will come

dont't be a joke.... STI with banks barely moves more than 5% a day, with a lot of stability and risk management. KOSPI swings till citizens suicide.

Mind boggling comparison here. KOSPI and SGX? I don’t want to get into the details but man, I hope you’re not shorting SGX.

The basis of our bank stocks is construction loans and mortgages. As long as the government keep bringing in foreigner to rent properties, they pay your mortgage and the bank finance properties and construction. Simple as that. Now if we stop bringing, that be worrying.

I wonder whats the shares of car loan in their business? One of the main beneficiary of high COE..

What an absolutely regarded question from a smooth brain. Do you know what happened the last time “banking industry suffers a crisis”? Give you a second there take your time. Slowly.

I think the counter argument is if there is a banking crisis like before, all other companies would be also affected and no sectors are safe. Plus the banks are more diversified now and also rely more on wealth management earnings than just lending. If you have holding power, it will recover eventually and reach even higher highs. You can either stay invested or wait till there is a crash before investing. But at current prices when price to book is 2 and dividend yields are lower than 4 percent, def have to be more cautious in putting in more money. The easy money has been made and any negative news will hit share prices hard.

Short answer: nobody knows the future. Design a portfolio that you can stick to 100 years

Banks way more stable vs memory chips man.. mem and ai infra parts super cyclical. A downturn is inevitable for the latter.

The influx of indonesian monies leaving their country into singapore is at historical high. Their president is f-ed up and i can see more monies will flow to SG again. We’re paying lousy rates for them to feel safe here. At the same time SG banks are making tonnes of money through loans related to AI & its derivatives (the gloves & suit makers, the “trading companies”, the data centres etc). Boat loads of profits are booked each day, just look at the yields on SGS market, up up up. Just today gahment revise up GDP forecast by 2%. That’s alot for a developed market & i strongly think it’s just about getting started. The downside is that the low-income earners are being left out entirely. No matter, more vouchers it is.

waiting for the day sti drop 30% but hard la