Fed Drama Is Temporary. My ETFs Are Forever
๐๐๐With President Trump officially nominating Kevin Warsh as the next Federal Reserve Chair to replace Jerome Powell in May, markets are entering a new phase of policy reassessment. Warsh has long been viewed as a hawk - attentive to inflation risks and cautious about excess liquidity. However his record shows a more situational and pragmatic approach.
During the 2008 financial crisis, he was one of the earliest voices inside the Fed calling for swift meaningful rate cuts to stabilise the system. That flexibility is why his nomination is generating mixed reactions.
Warsh's experience and credibility may help steady markets. His historical hawkishness raises questions about the future rate path. However Warsh was nominated by President Trump who prefers lower rates. This introduces uncertainty about how independent the Fed will be perceived.
Naturally investors are asking: Will markets continue to fall under Warsh?
In the short term, volatility may persist as markets recalibrate expectations. But over time, markets respond more to fundamentals than personalities. Warsh has shown that he is not rigid. He tightens when inflation is a threat and eases when growth is at risk. That pragmatism reduces the likelihood of a prolonged policy driven downturn.
This is why I stay focused on long term positioning rather than short term speculation.
I will continue to dollar cost average into $SPDR Portfolio S&P 500 ETF(SPYM)$ $STI ETF(ES3.SI)$
SPYM ETF - All Time Highs & Broad US Leadership
SPYM $SPDR Portfolio S&P 500 ETF(SPYM)$ which tracks the S&P500, recently reached its new all time highs, reflecting resilient earnings and strong balance sheets across US Large caps.
SPYM's top holdings include Apple, Microsoft, Amazon, Nvidia, Alphabet, Meta Platforms and Berkshire Hathaway.
These companies continue to drive global innovation and productivity. SPYM remains a low cost, diversified way to participate in long term US growth, regardless of who leads the Fed.
STI ETF - Strengthened by Singapore's Banking Leaders at Record Highs
STI ETF has been supported by strong performance from Singapore's financial heavyweights - DBS, OCBC and UOB, 2 of which have recently reached record highs. Their strong net interest margins, disciplined capital management and robust earnings have lifted the entire STI.
Top holdings include DBS, OCBC, UOB, Singtel, Capitaland Integrated Commercial Trust and Keppel Ltd.
The STI ETF offers stability, dividends and a lower volatility profile - a steady anchor amid global uncertainty.
FXI ETF - Strategic Exposure to China's Largest Companies
$iShares China Large-Cap ETF(FXI)$
Top holdings include: Tencent, Alibaba, Meituan, China Construction Bank, Industrial & Commercial Bank of China and Ping An Insurance.
FXI allows me to participate in China's long term potential without needing to time policy cycles or geopolitical narratives. FXI did well in 2025 as it has risen 24%.
Staying Focused Amid Policy Shifts
A new Fed Chair may influence short term volatility but it does not alter the fundamentals of disciplined investing.
My approach has not changed. I intend to maintain diversification through my core index ETFs, continue to dollar cost average and focus on long term structural trends. The Fed drama is transitory, meaning it is temporary and short-lived. My ETFs and the long term outcomes they support are built to last.
As the late Great Charlie Munger likes to say: "The First Rule of Compounding Is to Never Interrupt It Unnecessarily."
@Tiger_comments @TigerStars @Tiger_SG @TigerClub @CaptainTiger
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