4 of a kind... don't miss it.

Today marks a special day for the world and it could, maybe, perhaps, probably rock the stock market. Yes, this could be the start. As usual, for those who have not started your investment journey, this doesn't matter to you at all because you do not have a ready funded account so even if we are 100% sure (obviously no one will know) that the stock market is ready to crash, you will not be ready to participate. For the rest who are already in the game, there are 4 things to look out for (which is how I name the blog post, "4 of a kind"):

1) The Houthis have seized the Western coast of Yemen which is alternative lifeline for passing oil tanks after the captured of the war known Strait of Hormuz by the Iranians. The oil pipeline in Saudi are also damaged by drones sent from Iraq. Yes, the Middle East is in chaos and oil prices are greatly affected. The last time this happened, there were reports of petrol filling in Singapore that cost up to $200 per tank refill. This is like a deja-vu. With the rise of petrol comes inflation and the last time inflation came around, the stock market went seriously red.

2) The Federal Reserve meets tomorrow (15 September 2026). At this juncture, there is a 80% chance of an interest rate hike. What does it mean for the normal joe like us? Well... Singapore adopts an open market policy so when interest rate goes up, there could be a chance that MAS might follow suit causing a rise in borrowing rate aka your mortgage. For tech stock investors, this is also a time where stock prices will be affected as higher borrowing cost means slower growth. While a quarter point hike might not have an immediate ripple effect, a prolonged hike might present a good entry price for technology stocks.

3) The CEO of Anthropic, Dario Amodei made a claim to slow down growth for AI. His statement was backed by Sam Altman (Open AI) and Elon Musk (Grock) with fears of AI's development towards human extinction. This slow call has caused semiconductor stocks to plunge which presents a good buying opportunity is AI is the new world of the future. While I am afraid of the AI growth, I am equally excited on how it can improves human lives. The same story told again and again with the invention of rail roads, motor vehicles, aeroplanes, internet... these things change lives and eventually becoming a norm.

4) Rising bond yields is where the US Treasury offers a high return on the purchase of US Bonds. The 30 years bond yield is now at 5.36%, the highest since 2007. Isn't this good for bond investors? Yes, you right but it hurts existing bond holders. A rising yield means a higher and deeper promise of returns, meaning the US government needs to pay off a higher return from its debt (if and only if the promise is fulfilled). And we all know about the current US debt crisis. When higher bond yield occurs, investors could ditch comparable returns for stocks which is more risky, this is called equity risk premium.

Now with this 4 of a kind happening this week, be prepared for a red or if not a reddest mid September week. Market will be volatile with swings going up and down. However, the most important thing to note is that: "THIS TOO SHALL PASS!" There is nothing to be worried about, if your desired stock falls, jump in on the low, seize this opportunity to DCA (Dollar Cost Average) because we all know that climbing up the mountain always have its ups and downs. This is a capitalism market, only the strongest survive, just look at the S&P500 chart for proof.

 Happy investing!

What I will do:

I will be patient with my entries, they will be short term, almost a hit and run type. I will pay more attention to a reversal trade using options with 5 minutes chart. If today is a red day and not priced in, I will wait 2-3 more days before taking any action. The last time I did something like this while planning for the market to go red, I was up 24% after 6 months.


About The Contributor

Ben is not financially trained. He is not a certified financial planner and he does not sell any insurance or investment plans. He is not financially motivated by any entities to produce this blog. He just want his friends to know more about money management and not have anyone fall between the social cracks. Nope, he is not a millionaire though he aims to be financially free before 50 years old. 



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