I produced a YouTube video yesterday after someone alerted me to buy some bank stocks.
I thought the stock market had collapsed.
I didn’t look at stocks for two weeks before alerting with everything that was going on in my life.
Anyway, if you haven’t watched the video, here it is:
It’s not an accident.
Sharp correction but not a collapse.
This blog post is a reminder to myself of what to do next because I realize that my apathy towards finances has set me back.
If I don’t put this in writing, I may let inaction take over.
1. Bank shares.
You said that investing in our local banks is a good idea because they are well managed and well capitalized.
They have the potential to pay good dividends.
Most importantly, they are willing to do so.
Further decline in their stock prices would be an opportunity to add to my positions.
to dpsI’m looking to add $32.50 and $30.00.
to UOBI’m looking to add $28.00.
to OCBCI’m looking to add $13.00.
It has already invested heavily in all three banks.
So, I will add slowly in case the unthinkable happens and prices decline.
2. T-bill ladder.
I will continue to hold the ladder even though the lump sum yield dropped to 3.4% per annum at the last auction.
3.4% per annum is slightly higher than the 3.3% per annum that I can get from a 6-month FD.
However, T-bills are backed by our government.
You don’t have to worry about going over $100,000.
SDIC. Remember?
The adjustment I have to make is when it comes to using CPF OA funds.
Instead of competitively bidding at 3.5%, I’ll lower it to 3.4%.
If the lump sum return comes in below 3.4%, I will simply leave the money in the OA for the Strategic Partnership Fund.
The break-even return, if I remember correctly is 3.33%, in case of loss of additional two months of Central Provident Fund free access interest.
Nothing else at the moment.