Is it good to accumulating the Singapore Bank Stocks now, especially DBS?

If DCA I will go for STI ETF as it more diversified and about 35 percent is in local Bank

If you're a long term investor, then its appropriate to invest now. If you need the cash some time down the road, i guess you better re-look into your finances first.

Happy Investing !

Hello,

Depending on your time frame, I would say that bank stocks will definitely rise over the long term, just how long will it take. Interest rates are going lower, hence you have to check each banks' non-interest revenue to see how will the low interest rate environment affect them and their future revenue.

I see that the banks are collaborating with other companies digitally (DBS & STB digital tourism) or easy to withdraw cash (Ocbc & socash). Hence, this might increase their portion of non-interest revenue, which offsets the potential loss in interest revenue.

I feel that owning some bank stocks is okay generally but have to understand fundamentally as well and use technical analysis for your price entry.​​​

Why specifically Singapore bank stocks? Any partciular goal you have in mind?

With the current interest rate environment, bank's net interest margins will be serverly affected. Meaning: Lower revenue in the near term (1-3 years).

So if your goal is to seek for constant dividends, sure you can still go ahead. However, if your goal is to go for capital appreciation, there are much better options out there. There are much better investment opportunities and I suggest you start looking at where the growth trends are.

A good place to start are upcoming trends such as 5G, Cloud Computing, E Commerce, AI to name a few so look out for companies innovating towards that direction.

With 5 new digibank license issued along by MAS, it means more competition for the traditional big 3 banks in Singapore and may affect their revenue in the future. Personally, I took profit from DBS (+18%) and although its a solid counter, I would say based on opportunity cost, there are really much better options out there.

Hope this helps!