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SENSE & CENTS

Learning how to cope with losing is an integral part of an investor’s journey

This is important since losses will be hard to avoid with the rise in financial market volatility

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Leslie Yee

Leslie Yee

Published Tue, Jun 10, 2025 · 05:26 PM
    • An investor holding a diversified stock and bond portfolio will likely have some lemons in it. Nonetheless, other portfolio holdings could produce gains which more than compensate for any losses.
    • An investor holding a diversified stock and bond portfolio will likely have some lemons in it. Nonetheless, other portfolio holdings could produce gains which more than compensate for any losses. PHOTO: YEN MENG JIIN, BT

    [SINGAPORE] The US Federal Reserve’s 11 rounds of interest rate hikes – a total of more than 500 basis points between March 2022 and July 2023 to tame inflation – hurt businesses. The higher rates increased borrowing costs, thereby eroding corporate profits.

    However, the Fed’s monetary tightening cheered fans of Singapore dollar fixed deposits (FDs) and Treasury bills (T-bills) as returns from these safe instruments rose.

    Between September 2024 and December 2024, the Fed changed tack to address labour market weakening, with three rounds of interest rate cuts totalling 100 basis points.

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