January 2025 Update: DeepSeek Panic and Portfolio Performance

The U.S. stock market faced a wave of uncertainty in January 2025, driven by the rise of DeepSeek, a Chinese artificial intelligence lab. Their latest chatbot has sent shockwaves through the tech and investment communities.

This new model not only rivals—and in some cases surpasses—OpenAI’s o1 in performance, but it’s also fully open source and achieves this breakthrough at a fraction of the cost. The implications are significant: DeepSeek’s low-cost, high-performance AI could disrupt the valuation of chipmakers, many of which have seen their earnings soar during the AI spending boom. Investors are now grappling with the potential for a market recalibration as the AI landscape evolves.

Portfolio Performance: Staying the Course

Amid the market turbulence, my portfolio ended January flat. I maintained my focus on dividend-paying stocks and emerging markets ETFs, avoiding the temptation to chase high-flying, speculative tech companies. My strategy remains centered on generating steady passive income and preserving capital, with the goal of consistently outpacing inflation over the long term.

While the allure of fast-growing AI-related stocks is undeniable, I believe in the resilience of traditional industries and the stability of dividend-paying investments. This approach has allowed me to weather market volatility and stay aligned with my financial objectives.  

$HSTECH(HSTECH)$  

$NikkoAM-STC Asia REIT(CFA.SI)$  

$Wilmar Intl(F34.SI)$