Deepseek & the Average Expat Investor

This blog post originally appeared at – https://singapore.feebasedfinancialadvice.com/deepseek-the-average-expat-investor/

It would have been difficult not to have heard of ChatGPT over the past year or so since its launch, but you may not have heard the buzz about the latest entrant…Deepseek. Last week’s DeepSeek announcement has potentially fundamentally changed the game, and as Australian expats, we need to understand both the market implications and technical innovations driving this shift.

The DeepSeek Game-Changer

While many of us were enjoying our Australia Day weekend, China’s DeepSeek delivered a technological breakthrough that sent global markets into a spin. Unlike typical market fluctuations, this one’s different – it represents a fundamental shift in AI technology that could reshape our investment landscape.

DeepSeek’s R1 model isn’t just another ChatGPT competitor. Competing with the largest open source models on the market today is impressive, but what’s truly revolutionary is how they’ve managed to achieve this while requiring significantly less memory and infrastructure than competing models. They’ve somehow managed to cut development costs from $100+ million to just $6 million. This isn’t just about saving money; it’s about fundamentally changing how AI is developed and deployed.

Market Impact and What It Means for Us

The immediate market reaction was severe, with Nvidia dropping 17% in a single day – the largest one-day drop for any company in stock market history. For us sitting here in Singapore, watching the markets tumble was particularly interesting. We saw NextDC drop 7% back home, while the utilities index fell 4.8% as investors reconsidered their expectations for AI-driven power demand.

But here’s why this matters to us specifically as Australian expats in Singapore: we’re sitting at the crossroads of where this technology is developing. While the Western markets were caught off guard, we’re positioned right where the action is happening. This gives us a unique advantage in understanding and potentially capitalising on these changes.

Navigating the New Landscape

Being based in Singapore puts us in a sweet spot. We can access both Western and Eastern markets, and we’re perfectly positioned to spot opportunities as they emerge. If you’re holding ASX stocks like Goodman Group or NextDC, you might have felt some pain last week. But don’t rush to sell – this disruption could actually create opportunities.

For those of us juggling investments across multiple markets, now’s the time to think strategically about our positions. I’ve been speaking with fellow expats who are using Singapore as their base for diversification, and many are seeing this as a chance to rebalance their portfolios rather than make dramatic changes.

The Currency Question

One of the biggest advantages of being based in Singapore during market volatility is our currency flexibility. The Singapore dollar offers a stable base while we navigate these choppy waters. If you’re planning to eventually return to Australia, this might actually be an opportunity to think about your currency exposure. Several of my clients have been using this market disruption to gradually increase their AUD positions at more favourable rates.

Looking Beyond the Headlines

While the technical aspects of DeepSeek’s breakthrough are fascinating, what really matters for us as investors is understanding the broader implications. This isn’t just about AI becoming cheaper – it’s about the entire landscape of technology investment changing. Companies that we thought were unassailable might now face genuine competition, and businesses that seemed out of the AI race might suddenly find themselves back in the game.

First, take a breath. Market reactions to technological breakthroughs often overshoot in both directions. If you’re holding US tech stocks that took a hit, remember that many of these companies have robust business models that extend well beyond AI. Tuesday’s rebound, where Nvidia climbed back 8%, shows how quickly sentiment can shift.

For those of us with investments spread across Australia, Singapore, and global markets, this is a time for careful evaluation rather than dramatic action. Consider your exposure to different aspects of the AI ecosystem – from infrastructure players to software companies – and think about whether your portfolio reflects your view on where this technology is heading.

The Long View

Here’s what I’m telling my fellow expats: AI isn’t going away, it’s just evolving. DeepSeek’s breakthrough might have disrupted the market in the short term, but it could actually accelerate AI adoption globally. This could be particularly beneficial for Australian companies that previously found AI implementation too expensive.

As we move through 2025, keep an eye on how companies adapt to this new reality. The winners might not be the ones with the biggest AI budgets, but those who can most effectively implement and leverage these more efficient technologies. For us in Singapore, we have a front-row seat to this transformation, and that’s an advantage we shouldn’t underestimate.

Remember, while the technology driving these changes is complex, our investment approach should remain clear and strategic. Stay informed, stay balanced, and keep your long-term goals in sight. Whether you’re planning to head back to Sydney or build a life here in Singapore, understanding these shifts in the tech landscape will be crucial for making informed investment decisions.

As always, I’d love to hear your thoughts on how you’re navigating these changes.

To Your Financial Success!

Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to Australian professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3v

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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.

*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.