Recently, I had the opportunity to attend an investment session organised by the Association of Financial and Commodities Traders Malaysia (AFCTM), as a writer at DollarsAndSense.
The AFCTM was founded to build and strengthen the community for investors through delivering of professional training programmes and certifications, offering market insights and research and providing a platform for networking and industry collaborations.
The session started with an opening speech by Dr. Tham Poh Seng, President of AFCTM, who emphasised the associations’ priorities in equipping investors and traders with the latest knowledge and tools. For example, the association is working towards offering Continuing Professional Education (CPE)-approved courses to interested traders. The association is also planning to partner universities in Malaysia to provide trading courses.
In attendance was also guest speaker, James Ooi, Chief Market Strategist at investment platform, Tiger Brokers. He provided valuable market insights and here are 4 things I learned.
#1 Focus On The Long-Term
The persisting uncertainties and volatility in the second half of 2025 may send jitters among some investors, but that doesn’t mean that we should stop investing.
Perhaps investors need to focus on the long-term and ignore short-term frustrations such as the uncertainties surrounding trade policies, explained Ooi. For example, if you’re saving for long-term goals like retirement, you will require a long-term perspective. You can check if your portfolio is well-balanced and diversified adequately to help you achieve your long-term goals.
According to Ooi, the US market still has one of the better outlooks. JP Morgan Research forecasted that the S&P 500 Index will be at around the 6,000 mark at the end of this year. Goldman Sachs Research has projected the S&P 500 Index to climb to 6,600 in the next six months.
#2 Brace For More Volatility
The year 2025 began with a positive outlook but this changed soon after. In February 2025, US President Trump announced decision to impose tariff on Mexico, Canada, China and more countries. By end of March 2025, many of the major indices had ended in red. The S&P 500 then lost $5 trillion in stock market value in early April 2025 before closing at record highs later on in July 2025.
Moving into the second half of 2025, Ooi said that investors can expect more volatility but should position themselves well and stay invested. A market slump can present investors with opportunities and panic selling could cause you to miss out on recoveries. ”You don’t want to miss out on a runway rally, a sharp jump with no pullback,” said Ooi.
#3 Understand Trump’s Economic Policies
After Trump’s return to the White House, he has announced tariffs that have impacted global markets. He believes that imposing the tariffs would revitalise the manufacturing sector in the US.
The US government has also said that tariff revenue will be used to offset tax cuts. “The US government spent around $7 trillion in 2024 and collected around $5 trillion in revenue in 2024, incurring a deficit. The government wants to cut budget deficit and one of the ways it could do that is employing the quantitative easing (QE) policy measure, where the Federal Reserve purchases securities in the open market to increase money supply,” Ooi explained.
The US government also established the Department of Government Efficiency (Doge) to trim government spending. ”The tariff returns would increase revenue and be used to lower personal and corporate tax, and we may also see more economic stimulus,” said Ooi.
#4 Rising AI Stock Prices
The rising AI stock prices have raised alarms among some investors as it reminded them of the dot-com bubble.
Ooi believes that the AI bubble may not be a repeat of the dot-com bubble. “Stocks on Nasdaq traded at an astounding price-earnings (P/E) ratio of 175 back in those days prior to the dot-com bubble,” Ooi said. Currently, the P/E ratio is much lower.
There are also other differences between the dot-com bubble and the situation now. In the late 90s, the dot-com bubble burst and was accompanied by recession and rate cuts. However, the recession and rate cuts were partly due to the 9/11 attack in 2001.
Read Also: Invest Fair 2025: What I Learned From Attending One Of The Largest Investment Fairs In Malaysia
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