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US Big Banks Report This Week

🌟🌟🌟The ultimate financial reality show returns on Tuesday October 13 as $JPMorgan Chase(JPM.US)$Goldman Sachs(GS.US)$Citigroup(C.US)and $Wells Fargo(WFC.US)report their latest Q3 26 earnings. This is followed by $Bank of America(BAC.US)and $Morgan Stanley(MS.US)on Wednesday October 14.

Wall Street will be keeping a close watch on Net Interest Income trajectories and credit loss provisions to evaluate how sustained high interest rates are impacting consumer credit and overall bank profitability.

My Top Pick would be $JPMorgan Chase(JPM.US)as Jamie Dimon's fortress remains the gold standard. JP Morgan is the King of retail banking, asset management and trading.

Why Buy JPMorgan?

It is arguably the most resilient business model in the world. When the economy is great, it wins. When regional banks panic, JPMorgan steps in, swallows them up and wins anyway. It is a " sleep well at night" compounding machine.

Dear Friends, which bank stock do you favour most? Please share your thoughts. Thanks.

Is It Time to Buy AI Stocks Or Say Bye?

🌟🌟🌟OpenAI's corrected USD 50 billion annualised revenue run rate (ARR) resulted in media screaming "AI Bubble" and suddenly every tech stock on the board looks like it is catching a cold.

But as an investor, this dramatic narrative has forced me to ask: Is this accounting drama going to drag down the entire AI sector or is the market handing me the buying opportunity of a lifetime?

Why This Controversy is A Gift For Smart Buyers

The AI Engine is intact : This isn't a demand problem. It is a math problem. Corporate enterprise adoption and generative AI growth are running at full throttle.

The Valuation Reset: Widespread market fear over temporary headline noise is a beautiful thing. It cools down overheated valuations, shake out the hot money and lets you accumulate shares of great quality AI companies like $Alphabet - C(GOOG.US)$Meta Platforms(META.US)and $Microsoft(MSFT.US)at a much fairer price.

For high conviction buyers, this noise does not mean the AI party is over. It just means the entries are getting attractive again.

Dear Friends, what do you think? Is it time to buy or bail out?

🌟🌟🌟The Singapore banks selloff was the biggest news of the week. Normally the banks move slightly up or down by 1% to 2% but a huge move like almost 10% for $OCBC Bank(O39.SG)is pretty alarming. It is easy to panic sell but I am holding strong.

When I step back and look at what underpins these local banks, I realise that letting go of these assets during a temporary pullback is not a good idea. Instead it is a great opportunity to accumulate them since now I can buy in lots of 10 rather than 100 shares.

As Warren Buffett famously said:

"Be fearful when others are greedy and greedy when others are fearful".

🌟🌟🌟A Big Thank You to @TheInvestingIguanafor sharing your investing journey and your valuable insights with a special focus on Singapore stocks. I like your concept of Forensic Income Investing. I am very much a dividend focused investor as it is a great way to earn passive income while I sleep.

What is your advice on Singapore SReits? Do we still invest in SReits even after they have been hammered in the market due to rising interest rates in Singapore?

What about the recent selloff of Singapore Banks?

Is it time to buy them?

Thanks for your help.

The Dividend Snowball: How To Own Singapore's Banking Giants Without the Heartache

🌟🌟🌟Compounding is like the financial equivalent of rolling a tiny snowball down Bukit Timah Hill. At first, it looks insignificant. But as it rolls, the snow picks up more snow. In the investing world, your money makes the babies, and then those babies have babies, until you are suddenly sitting on a generational empire.

In Singapore the kings of this compounding kingdom are our local banking giants: $DBS(D05.SG)$OCBC Bank(O39.SG)and $UOB(U11.SG). Together they command over 50% of the entire Straits Times Index or STI. They are not just banks. They are the structural tollbooths of South East Asian wealth.

However the recent selloff of DBS, OCBC and UOB have caused much heartache especially if you are a new investor.

The smartest stress free way is to invest in $STI ETF(ES3.SG). In just 1 powerful trade, you own the best 30 blue chips stocks trading on the Straits Times Index.

Apart from the 3 local banks, the top 10 Holdings include $Singtel(Z74.SG)$SGX(S68.SG)$ST Engineering(S63.SG)$Keppel(BN4.SG)$CapLand IntCom T(C38U.SG)$JMH USD(J36.SG)and $YZJ Shipbldg SGD(BS6.SG).

The top 10 companies alone represent over 81.7% of the entire ETF. When you buy this ETF, you are not speculating on unproven startups. You are buying a highly concentrated block of dominant market leaders.

When the local banks experience a sharp short term selloff, it temporarily drags the entire index down. But for a true believer of the Warren Buffett mindset, that price dip is just the long hill getting a little steeper, giving your snowball even more room to pick up speed.

This current selloff, I am buying more $STI ETF(ES3.SG). Will you join me in this bargain hunting spree?

The Singapore Banks Selloff Continues on Thursday. What Should Investors Do?

🌟🌟🌟The selling pressure on the SGX has intensified on the 2nd day, turning what started as a single broker downgrade into a broader macro rout. Following Wednesday's initial hit, the 3 local banks $DBS(D05.SG)$OCBC Bank(O39.SG)and $UOB(U11.SG)extended their declines on Thursday, dragging the Straits Times Index (STI) down by more than 2.5%.

There is also a fresh macro warning from JP Morgan that surging global long bond yields that were driven by renewed inflation and debt fears in Wall Street, will negatively impact Q3 2026 earnings for South East Asian lenders. This has prompted major institutional desks to trim their banking exposure.

What Should Investors Do Right Now?

Your response should be dictated by your specific investing style and time horizon.

Dividend & Income Investors: Do Not Panic. Stagger your buys.

If your objective is long term passive income, this selloff is a gift. The underlying fundamental health , fortress balance sheets and regional wealth management engines of the local trio have not changed.

Short Term Tactical Traders: Hands Off.

For momentum and swing traders, trading volume is exceptionally heavy on the sell side, creating a clear technical breakdown.

Stay on the sidelines until the bleeding stops. Wait for the banking stocks to form a clear technical base before attempting any mean reversion trades. Q3 earnings season will serve as the ultimate litmus test.

Concluding Thoughts

If you choose to stay the course, hold your ground and use this market correction to your advantage.

As Warren Buffett famously said:

"Every decade or so, dark clouds will fill the economic skies and they will briefly rain gold. When downpours of that sort occur, it is imperative that we rush outdoors carrying buckets, not thimbles".

Dear Friends, will you join me and grab your buckets to catch this rain of Gold?

OCBC Dropped 5.5% On Wednesday. Is It A Buy or Bye?

🌟🌟🌟The sudden sell off across the 3 Singapore banks $OCBC Bank(O39.SG)$DBS(D05.SG)and $UOB(U11.SG)was sparked by the Citigroup downgrading OCBC from Neutral to Sell, slashing its price target to SGD 27.50. This implies that OCBC was heavily overextended relative to its historical fundamentals.

OCBC had a stellar run this year as the stock is up 53.20% year todate.

Analysts said that OCBC's upcoming Q3 2026 earnings are expected to be flat year on year.

The Case for Good Bye:

If your goal is capital appreciation over the next 6 months to 12 months, caution is warranted.

The Case for Good Buy:

If you are a long term investor, today's drop presents a healthy entry point.

OCBC, DBS and UOB remain some of the safest, most well capitalised financial institutions in the world. The long term thesis isn't just about lending anymore. All 3 banks have successfully transitioned into dominant regional wealth management hubs, capturing huge inflows across Asia.

With the new 10 share lot size that took effect from Monday , 5th October 2026, retail investors can comfortably buy this dip in smaller tranches without needing lots of capital upfront.

So are you planning to buy more OCBC shares today?

Is SpaceX Worth It Or Overpriced?

Morgan Stanley maintains a roaring USD 300 price target, citing a narrow window of opportunity for retail investors to buy before major catalysts land:

Starship Flight 15: Scheduled for late October or early November. If the launch pad successfully catches the upper stage of the largest rocket ever built, it will be the single largest positive catalyst since SpaceX IPO.

Q3 Earnings: Expected in late October, it will shine a light on the high margin revenue being unlocked by the Starlink network.

My Take

If you are looking for defensive stability, it is best to sit on the sidelines. But if you have a multi year horizon and want a piece of pure growth cosmic infrastructure that doubles as an AI play, SpaceX remains a high conviction addition to your portfolio before the next flight clears the tower.

Which side are you on: Defensive or Offensive on SpaceX?

🌟🌟🌟Today is a special day for small retail investors in Singapore as the SGX has officially slashed the minimum board lot size from 100 shares down to just 10 shares for 11 of its highest priced blue chip stocks. This makes it massively accessible for retail investors with smaller budgets to get a piece of Singapore's corporate titans.

Which is the best buy among the 11 stocks?

I am eyeing $UOB(U11.SG)as it offers great value compared to its peers $DBS(D05.SG)and $OCBC Bank(O39.SG). This is due to its lower entry cost, cheaper valuation and a massive growth catalyst in South East Asia.

At the last closing price of SGD 43.06, a 10 share lot of UOB only requires a capital outlay of just SGD 430.60 compared to the previous SGD 4,306 for 100 shares.

UOB also pays a lovely dividend yield of 3.69% tax free. Performance wise, UOB is up 22.16% year todate.

SGX also said that it would review the list every 3 months. The next review will happen in January 2027 based on daily closing prices between July and December 2026.

Exciting times are ahead for the Singapore stock market!

Why Did $SGX(S68.SG)Lose Steam On Friday?

The SGX lost steam today, dropping sharply by 5.7% because a huge global macro storm hit Asian markets right before tonight's highly anticipated US Non Farm Payrolls Data.

The selling pressure across the board was triggered by a scary combo of skyrocketing global bond yields with the US 10 year Treasury yield surging to a multi decade high of 5.34%. It is also due to a massive spike in oil prices due to rising geopolitical conflict in the Gulf.

This sudden flare up revived global inflation fears, causing international funds to pull money out of rate sensitive exchanges like Singapore's.

Today's drop is a classic cooling off breathing spell for SGX. The STI Index hit a historic all time high of 5,828.50 points just a month ago.

Today's dip is a great opportunity to buy $STI ETF(ES3.SG). It is holding up beautifully compared to individual stocks. This proves why index investing is the ultimate safety net.

Why Micron Barely Move Post Earnings?

When a company like $Micron Tech(MU.US)prints a massive USD 3 billion revenue beat and its stock barely moves, it triggers an immediate wave of market anxiety. It feels like the ultimate "sell the news" trap.

However if you delve deeper, it is simply undergoing a healthy consolidation pause before the next massive leg up.

Why Micron stalled?

Micron has already experienced a parabolic 270% run over the past year. The market has already priced in a blockbuster quarter into the current share price.

CEO Sanjay Mehrotra has announced Micron is increasing its fiscal 2027 capital expenditure to aggressively build new manufacturing plants. Short term traders preferred immediate stock buybacks instead of seeing the cash funneled into heavy infrastructure.

The Next Leg Up is Inevitable

Micron said that its critical HBM capacity is completely sold out through 2027 and into 2028.

As tech giants deploy trillions of dollars into Agentic AI, the industry bottleneck has shifted from logic processing to memory capacity.

High performance memory is the oxygen of AI and Micron is one of the only 3 companies on Earth capable of producing it at scale.

The Verdict

The smart money treats this flat reaction as an accumulation gift. This temporary pause is the launchpad being built for the next leg up when the focus is shifted to the huge contracted cash flows of 2027 and 2028.

🌟🌟🌟Which is more important: A Hot PCE or Micron's Guidance?

On one side, you have the PCE inflation print. This is the Federal Reserve's favourite economic gauge. If that number comes in hot, showing that consumer price pressure is still stubbornly sticky above the 2% target, the market may throw a tantrum.

Suddenly thoughts of future interest rate cuts evaporate, bond yield spikes and a wave of red sweeps across the broad indexes as investors run for cover. This is the cold hard blanket of macroeconomic reality.

Then the evening arrives. The closing bell rings and $Micron Tech(MU.US)steps into the spotlight.

For investors holding tech, semiconductor stocks or riding the multi trillion dollar AI wave, PCE pales into insignificance compared to Micron's forward guidance.

Micron isn't just reporting numbers. It is delivering a verdict on the entire AI infrastructure cycle.

If Micron confirms that their HBM is entirely presold through 2027, and that hyperscaler demand is accelerating, it won't matter what the Fed does with interest rates. That kind of incredible growth will completely overpower the PCE news.

So what matters more? As an investor of NVIDIA$NVIDIA(NVDA.US) and DRAM ETF$Roundhill Memory ETF(DRAM.US), Micron's earnings report is more important to me.

Let's brace for a wild 24 hours to find out.

UOB Market Momentum

🌟🌟🌟Watching $UOB(U11.SG)rip higher this week to lead the STI gainers at SGD 43.29 was an absolute master class in resilience. The Fed's latest rate hike handed UOB a massive lifeline. With 66% of its revenue tied directly to net interest income, UOB is perfectly positioned to capture this margin expansion.

Jefferies has raised UOB's target price to SGD 48 too. UOB is finally catching up to the other 2 banks, unlocking massive value and rewarding investors who ignored the noise and trusted UOB's fundamentals.