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Hey fellow investors! I just talked about how I’m trimming some of my Singapore blue-chip winners and rotating into REITs and fixed income — areas I believe can hold up better in uncertain times. But as the post was posted, the markets really did turn volatile – and fast.

The US stock market wiped out over $6 trillion in just two days — one of the sharpest drops we’ve seen in recent times — and many of you have reached out asking, “Uncle, what do you think about this crash? What are you doing now?”

With panic among my fellow investors and friends, I thought I’d jump in with a post to share the 5 things I’m doing (and not doing), and how I’m preparing myself, just in case things get worse before they get better.

But before we dive in, let me remind you that this post is for informational purposes only and not financial advice. Always do your own research and consult a licensed financial adviser before making any investment decisions. I own some of the shares discussed, but what works for me might not work for you.

Alright, let’s get started!

1. No Jumping To Drastic Moves 

Let me start by saying this — I’m not panicking, and I’m not making any drastic changes, at least not yet.

Corrections are part of investing. Markets go up, markets come down. This isn’t the first time we’ve seen a sudden sell-off, and it won’t be the last.

If your portfolio is made up of strong, income-generating assets — like quality and well-diversified dividend stocks, REITs, and fixed income — the best thing to do in a moment like this is to stay calm. No need to sell in fear, and no need to suddenly go all-in just because prices are dropping.

2. Dusting Off My Crisis Handbook 

That said… I’m not just sitting back doing nothing either.

I’m going back to my portfolio, looking at what I own, why I own it, and how each piece fits into the bigger picture. This is not a time to panic — it’s a time to get curious.

I’ve also pulled out what I like to call my “crisis handbook.” Okay lah, it’s not really a leather-bound book or anything fancy — more like a humble Google Document I’ve kept over the years. But the idea is the same:

What’s my plan if markets fall another 5%? Another 10%? What should I absolutely avoid doing? And what would I be excited to buy at the right price? 

I’ve a systematic way of investing my ‘dry powder’ over the course of a downturn, to instill discipline into the investing process because investing during a downturn is not for the faint-hearted. I’ll share more about this next time. 

3. Don’t Rule Out a Reversal

Also, a gentle reminder: markets can surprise us not just on the downside… but on the upside too.

We’ve seen this before — sharp sell-offs driven by fear or politics, only to see a reversal when sentiment shifts or headlines soften. While there’s real concern now over trade, tariffs, and geopolitical tensions, there’s also a chance that cooler heads might prevail. 

Sometimes, when the market reacts too strongly or too quickly to new policies or political shifts, there’s a chance of walkbacks or reversals. We’ve seen it happen more than once in the past few months.

I’m not saying the market will bounce back tomorrow. But I’m also not betting that it collapses further. The key is — no one knows. So stay flexible, and don’t get locked into one extreme view.

Before we move on, if you could do this uncle a favour and give this post a ‘like’ and subscribe to the channel, I’d be extremely grateful. Let’s keep the conversation going, especially in such volatile times! Alright, let’s jump back in.  

4. Making Sure I Have Ammunition

This is also why I’ve been trimming some of my blue-chip winners and raising my cash position — as I shared in my last post. In fact, I’ve been building cash since the start of the year.

Cash isn’t just for waiting — it’s for acting with confidence when opportunities come. It’s my dry powder. 

If the markets continue falling, I want to be ready to add to positions — slowly, carefully, not all at once. Whether it’s REITs, fixed income, or dividend stocks that go on sale — having cash gives me flexibility.

5. Keeping Calm Through History And Long-Term Perspective

So, what’s keeping me calm through all this?

First, it’s the experience of going through past market crashes — COVID, 2018, the taper tantrum, GFC. They all looked scary at the time, but they also taught me that markets move in cycles. Things that go down don’t stay down forever. Panic selling always looks clever in the short term, but over the long term, it rarely pays off. I’ve made this mistake so many times – selling off, to buy back at lower prices, but never managed to do it. 

Second, I’m staying calm because I’m investing based on a strategy, not headlines. I’m not reacting to who’s up in the polls or what tariffs are being proposed. My portfolio is built for income, resilience, and long-term growth.

And that’s really the third and most important point — thinking long term. When you zoom out, the noise becomes smaller, and the long-term compounding of dividends and steady reinvestment becomes clearer. That perspective helps me stay focused, stay invested, and not get swept up by the fear of the week.

So whether the market drops another 5%, or bounces back tomorrow, I’ll adjust if I need to — but I won’t abandon the plan.

Of course, nothing is guaranteed. The reality is, no one knows exactly how this will play out. That’s why instead of trying to predict the headlines, I focus on managing risk, staying diversified, and positioning myself to respond — not react — as things evolve.

The Dividend Uncle’s Take

So that’s where I am — no panic yet, some quiet preparation, and keeping my focus on the bigger picture.

Corrections test your temperament more than your skill. If you’ve got a plan, and you’ve built a resilient portfolio, this is the time to stick to it. At the same time, prepare yourself mentally on what to do if a crisis does develop, because in a downturn, discipline and mental strength will be needed to do the right thing. 

Okay, that’s all from me today. If you found this post helpful, do help this uncle out — tap the ‘like’ button, and share this with any friends who might be stressing out about the markets. And let me know in the comments — are you buying, holding, or just watching like me?

Until next time, stay steady and invest wisely.