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How to Handle a STI Peak Investment: Three Steps
Invested S$100,000 at the STI peak of 5,041? The index fell 7% in a month. Here are three options: hold, dollar-cost average, or review your portfolio.
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You put S$100,000 into the Straits Times Index at 5,041 on 23 February 2026. Less than a month later, the index sat at 4,697, down almost 7%. Your portfolio is worth less than what you paid.
That feeling has a name: loss aversion. A S$100 loss stings more than a S$100 gain pleases. Investors sell, fearing further declines. They regret not waiting for lower prices.
Nobody calls market tops consistently. Professionals struggle. The "best" timing is obvious only in hindsight. Markets do recover, but emotional decisions lock in permanent losses.
Here are three options if you are in that position.
Do Nothing
If you still believe in your investment thesis, the best move is often to stay put. Investors who hold through volatility see the effects of compounding over time. Temporary declines are part of long-term investing.
Dollar-Cost Average
Rather than trying to time the market, commit to a regular dollar-cost averaging strategy. It removes emotion and lets you buy more shares when prices drop.
Review Your Portfolio
Ask yourself: have the company's fundamentals weakened? Have your financial goals shifted? Does the asset mix still fit your risk tolerance? A falling share price does not automatically mean the business has worsened. Share prices reflect what investors are willing to pay, which can be driven by emotion or economic uncertainty.