Monthly Brew (November 2026): Why we remain selective on stocks after the October correction

Beansprout Pro in brief

• Equity markets experienced a sharp correction in October. The decline has raised questions about whether investors should reduce their exposure to stocks or take advantage of lower share prices.
• Singapore's economic and corporate fundamentals have remained relatively resilient. However, with growth expected to moderate, investors will need to assess whether corporate earnings can continue supporting equity valuations.
• Higher bond yields and elevated valuations remain important risks. Even companies with healthy earnings could experience further share-price weakness if investors become less willing to pay high valuations.
• The outlook for Singapore equities will depend increasingly on earnings and valuations. We assess whether the STI still offers attractive potential returns over the next 12 months and how much downside investors should be prepared for.
• We are becoming more selective about investment opportunities. We examine which types of companies we favour in the current environment and what the recent correction means for our Opportunity Pot.