🌟🌟🌟One of the most important news today is the Bank of Japan raising its interest rate to 1.25%. This elevates Japanese borrowing costs to its highest level in 31 years since 1995.

The biggest risk to the global market is the Japan carry trade. When it cracks, the fallout spreads far beyond Japan, capable of triggering forced liquidations and sudden market crashes across global stock and bond markets.

What should investors do?

Cut leverage: Pay off margin loans or reduce borrowed money used for trading.

Reduce risk: Trim holdings in speculative assets that rely on cheap funding

Diversify: Move money into safer stable assets or cash equivalents.

A good Singapore stock to invest in is $ST Engineering(S63.SG). ST Engineering is a global technology, defence and engineering powerhouse that operates across the aerospace, smart city and public defence sectors.

This is because its revenue is heavily driven by long term government contracts and rising global defense budgets, making it almost entirely immune to immediate consumer spending drops or global monetary policy shocks.

ST Engineering also pays a dividend yield of 1.81% while waiting for capital growth.

Fasten your seatbelts for the volatility ahead.