I am becoming more cautious about rate-sensitive stocks as producer prices come in hotter than expected. With the December hike probability climbing, I think market volatility could remain elevated, especially for high-valuation tech stocks and heavily leveraged companies. However, I would not rush to sell everything based on rate expectations alone.

For me, the key is to separate short-term market sentiment from long-term business fundamentals. I am still bullish on AI and semiconductors, but I want to see companies turn strong demand into sustainable earnings and cash flow. I would rather accumulate quality stocks gradually on pullbacks than chase rallies or make emotional decisions.

Singapore’s export numbers are encouraging, especially the strong growth in electronics. I am also keeping an eye on banks and S-REITs, but I will be selective with my entries. My approach remains the same: stay diversified, keep some cash ready, and let the market offer better opportunities instead of trying to predict every Fed move.