Hold on to your seats, because September 2024 has been a wild ride for the stock markets! If you've been checking your portfolio and wondering why your stocks seem to be moving like a rollercoaster, you're not alone. Market volatility has been at an all-time high, and it’s been keeping investors on their toes. But what’s causing all this turbulence? Well, a mix of global economic shifts, interest rate adjustments, and investor sentiment are all playing a part in shaking things up. Let’s break it down in simple terms.

First up, the big players—the central banks—have been busy tweaking interest rates. The U.S. Federal Reserve decided to cut rates by 50 basis points to 4.75%-5.00%, while the European Central Bank followed suit with a 0.25% cut, bringing its benchmark rate down to 3.5%. These moves are meant to give the economy a boost by making borrowing cheaper, encouraging businesses to expand and investors to spend. Sounds great, right? Well, not so fast. Whenever interest rates shift, it causes waves in the stock market, as investors shuffle their funds between stocks, bonds, and other assets. Singapore hasn’t been immune to these changes, and our own Straits Times Index (STI) saw a 4.1% jump, hitting 3,585.29—outperforming most ASEAN markets.

Another major player in this financial drama is China. Facing a slowing economy, the Chinese government rolled out big stimulus measures to reignite growth, and that’s been sending ripples across Asia. Investors love a good stimulus package, but uncertainty still looms. Will it be enough? How will it impact trade with Singapore and the rest of the region? As a result, we’ve seen an increase in trading activity, with the Singapore Exchange (SGX) reporting a whopping 75% year-on-year jump in market turnover value—hitting a high of S$30.4 billion, the biggest since May 2022! That means a lot of buying, selling, and—yes—market swings.

So, what does all this mean for you? If you’re a long-term investor, don’t panic. Market volatility is normal, and savvy investors know that opportunities come in times of uncertainty. Keep your eyes on the bigger picture—companies with strong fundamentals will ride out the storm. If you’re feeling nervous, reviewing your portfolio with a financial expert (like me!) can help you stay on track toward your financial goals. Remember, markets move in cycles, and what goes down can also go back up. Stay smart, stay patient, and let’s navigate this exciting financial landscape together!