It’s been an exhilarating five weeks as the Straits Times Index (SGX: ^STI), or STI, surges to record highs.
The bellwether blue-chip index broke through the 4,000 level for the first time in early July and has gone on to exceed 4,200.
Along the way, a wide range of blue-chip, mid-cap, and small-cap stocks have hit new 52-week or all-time highs.
This rampant optimism may feel like a good thing, but it also creates a dilemma for many investors.
Should they sell into this bull run and crystallise their profits, or hold their shares to ride the rally?
We break down the options to let you understand and decide better.
The case for selling
It makes sense to sell your holdings in a stock if its business is floundering.
Remember that stocks are more than just share prices bouncing around on a screen.
They represent living, breathing businesses that sell products and services.
Hence, if the business does well, its share price should naturally head higher.
But if you are holding on to a business that faces insurmountable challenges, it may be a good idea to review your portfolio to divest such holdings.
Bull markets are, therefore, perfect for selling companies that have fallen by the wayside and are languishing.
The optimism that permeates the stock market can help to lift the share prices of even weak companies, similar to how a rising tide lifts all boats.
Of course, if you need cash urgently, this is also a good reason to sell some shares during a bull market.
Other than the two reasons above, you should either be holding on to your shares or buying even more.
Riding the rally
Proper investing requires a systematic process that focuses on the business behind the stock, rather than being fixated on its share price.
So, if the business is doing well, it makes sense to ride the rally as these gains could be multiplied manifold over the years.
It may feel tempting to sell your shares to crystallise some profits, but if the company has solid long-term prospects, you may be missing out on substantial future gains.
Then, some companies announce steady dividend increases.
Such pronouncements give investors a signal that their business can continue to flourish.
The ability to pay higher dividends also signals that management is confident that the business can do well over the long term.
In such instances, holding on to your shares means that you can enjoy steadily higher dividends as time passes.
One example is iFAST Corporation (SGX: AIY).
The fintech reported steadily increasing profits over the years, and for its first half of 2025 results, management committed to a total 2025 dividend of S$0.08 or higher.
This annual dividend is significantly higher than the previous year’s S$0.059 and also follows three years of stagnant annual dividends of S$0.048 each.
Over the last five years, iFAST’s share price has risen 308% to its current S$9.38.
If an investor had sold off the fintech’s shares early on, they would have missed out on significant capital gains and also missed out on future higher dividends declared by the business.
Accumulating more, but carefully
It may sound counterintuitive to buy shares when prices are heading higher.
But there is a case to be made for doing so.
Some companies see their share prices soaring because of positive developments or when they announce a stellar set of earnings.
Investors who believe that the company can continue to deliver strong results may decide to scoop up its shares even if these shares have surged higher.
A recent example is Centurion Corporation (SGX: OU8).
The dormitory owner and operator announced back in July that it planned to list a REIT called Centurion Accommodation REIT with an initial portfolio valued at S$2.1 billion.
The group also reported a robust set of financial results for the first half of 2025.
Revenue rose 13% year on year to S$140.7 million while core net profit improved by 22% year on year to S$65.4 million.
Shares of Centurion Corporation surged 79% year-to-date to S$1.72, but investors who are confident of its prospects may see continued potential.
Buying at close to the all-time high may not deter investors who possess a long-term mindset, as they may believe that the company can continue to grow.
Get Smart: Not an easy decision
When markets surge without warning, it can be tough to control your emotions.
Both greed and fear will take hold.
Fear of losing your hard-earned gains may prompt you to sell your shares when you should hold them over the long term.
And greed could also compel you to chase expensive stocks that are due for a tumble.
But if you diligently study the business, you can decide on the best course of action to take during a bull market.
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Disclosure: Royston Yang owns shares of iFAST Corporation.
