The Straits Times Index (SGX: ^STI) has just crossed 4,100 as of 11 July 2025, setting another record in a year filled with optimism and momentum.

Dividends are rising. Corporate earnings have held steady. And the long-quiet IPO market is beginning to stir again, with NTT DC REIT (SGX: TBD) officially listing on SGX just yesterday. 

It certainly feels like the good times are back.

But if you’re feeling conflicted, you’re not alone.

The emotional tug-of-war is real

Some investors feel like they’ve missed the boat.

Others are gripped by FOMO, afraid that the rally will leave them behind.

Some hesitate, worried the market will dip right after they buy.

And a few are wondering: should I take profit while I can?

These emotions are natural. But they can also cloud your judgement.

When the market feels too good, it’s even more important to step back and focus on the fundamentals.

Focus on companies with stronger earnings ahead

Even as the STI climbs, several businesses are still set up for sustainable earnings growth, not just short-term price gains.

Take Singapore Technologies Engineering (SGX: S63). 

As of March 2025, it held a record-high order book of S$29.8 billion, providing nearly three years of revenue visibility. With solid demand across aviation, defence, and smart city solutions, the group is positioned for steady growth, backed by a progressive dividend policy that rewards long-term shareholders.

Then there’s Singtel (SGX: Z74). Its net profit (excluding exceptional items) rose 9% year-on-year to S$2.47 billion. This growth was attributed to strong performances from Optus, NCS, and regional associates. The telco has guided for continued growth in FY2025, supported by cost savings, expanding digital infrastructure, and its regional associates. A rising full-year dividend of 17 cents per share suggests confidence in its long-term earnings outlook.

Meanwhile, Singapore Exchange (SGX: S68) is quietly building a more resilient foundation. Management has targeted 6 to 8% annual revenue growth over the medium term, and recurring income from derivatives, currency products, and market data continues to grow. With IPO activity picking up, including NTT DC REIT’s listing, SGX is well placed to benefit from a more active and diversified capital market.

What do these blue-chip companies have in common?

They’re not just riding the rally — they’re building sustainable earnings for the years ahead.

So, what should investors do now?

Don’t chase, but assess.

Rising prices can trigger a fear of missing out. 

But share prices are just one piece of the puzzle. 

Ask yourself: is the business likely to earn more in the future? That’s what drives long-term returns.

Stay selective, not reactive

Not every rising stock is worth owning. Stay focused on companies with clear earnings visibility, strong balance sheets, and the ability to grow their dividends over time.

Buy with discipline

Even in a rising market, you don’t have to rush. Consider buying in stages. This reduces regret and keeps you engaged without overcommitting.

Hold for the right reason

If your current holdings are still delivering results, don’t sell just because prices are heading higher. The power of compounding often kicks in only after years of staying invested.

Get Smart: When the excitement fades, what remains..

At 4,100, the STI is sending a clear message. Markets have rewarded long-term investors.

But in every rally, there are temptations to chase and traps to avoid.

So, let others watch the index.

Let us stay focused on what matters — owning strong, growing businesses and having the discipline to hold them for the long term.

Because it’s not about predicting the next peak. 

It’s about making sure you’re still holding quality stocks when you get there.

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Disclosure: Joanna Sng owns shares of NTT, STE and SGX.