Why we're becoming more selective and holding more cash in our Model Portfolio

Beansprout Pro in Brief

• The recent sharp pullback in Singapore stocks and rising global bond yields have prompted us to reassess how our Opportunity Pot Model Portfolio is positioned.
• While corporate earnings remain resilient, higher bond yields could put further pressure on equity valuations. This has led us to reassess our exposure to smaller companies, including those benefiting from AI and Singapore infrastructure spending.
• Several of our holdings have delivered strong gains since the portfolio's inception. We examine whether their potential returns continue to justify the risks of holding them, and when it may be appropriate to take profits.
• We also review our existing Singapore bank holdings following the recent market correction, alongside our growing preference for larger companies with stronger balance sheets and cash flows.
• Finally, we consider the role of cash in managing portfolio risks and maintaining flexibility for future investment opportunities. In this update, we share the changes we've made to our Model Portfolio, the rationale behind our decisions, and what could prompt further adjustments.