As we head into the Year of the Red Fire Horse, the energy in the Singapore market is hard to ignore.
This momentum is fueled by local favorites such as DBS Group Holdings Ltd (SGX: D05) trading at record highs near S$60, and the Singapore Exchange Ltd (SGX: S68) itself smashing through a historic peak of S$19.20 just last week.
In just 12 months, we’ve watched the Straits Times Index transform from a steady trot at 3,372 to a full-speed gallop toward 5,000.
In Chinese zodiac lore, the Horse represents speed, power, and forward motion. But any experienced rider knows this. Speed without control is dangerous.
The same applies to investing.
To stay disciplined while markets move faster, here are five smart money habits that can help you build lasting financial success in 2026.
When markets hit new highs, temptation creeps in. The stock that just broke out. The small cap that landed a big contract. The feeling that you might be left behind.
That’s how mistakes are made.
The Smart Habit: Before buying, pause and ask one question.
Are you buying a strong business, or are you reacting to a rising price?
If valuation has run far ahead of earnings, it’s okay to wait. Not every race needs to be entered.
Remember, a horse that sprints too early might not have the stamina to finish the race.
In the Year of the Horse, your most loyal companions are your Blue-Chips and REITs. These are your workhorses.
They might not be flashy, but they are reliable, and they consistently pull the weight by providing steady dividends.
The Smart Habit: Reinvest your dividends instead of spending them all.
This is the secret to compounding. When dividends buy more shares, compounding starts to work.
By reinvesting your payouts, you are essentially adding more “horses” to your stable, each working to generate even more income for you in the years to come.
In a “Fire Horse” year, things may move fast. Interest rates in 2026 have stabilized, but they remain a key factor for many businesses, especially those that carry significant debt.
Highly leveraged companies have less room to manoeuvre when conditions change.
The Smart Habit: Make it a habit to check the Gearing Ratio (debt level) of your holdings.
A well-managed REIT typically keeps its gearing below 40%. Lower debt gives companies flexibility and resilience.
Just as a rider checks the reins to ensure they have control, you must ensure the companies you own aren’t carrying too much weight.