I produced a YouTube video yesterday after somebody alerted me to purchase some financial institution shares.
I believed the inventory market had crashed.
Didn’t take a look at shares for two weeks previous to the alert with all that has been occurring in my life.
Anyway, you probably have not seen the video, right here it’s:
It is not a crash.
A steep correction however not a crash.
This weblog submit is extra a reminder to myself what to do subsequent as a result of I’m conscious that apathy in the direction of monetary issues has set in for me.
If I do not put this down in writing, I would simply let inaction take over.
1. Financial institution shares.
I’ve mentioned that it’s a good suggestion to spend money on our native banks as a result of they’re effectively run and effectively capitalized.
They’ve the power to pay good dividends.
Extra importantly, they’re prepared to take action.
Additional decline of their inventory costs can be a possibility so as to add to my positions.
For DBSI’m $32.50 and $30.00 so as to add.
For UOBI’m $28.00 so as to add.
For OCBCI’m $13.00 so as to add.
I’m already considerably invested in all three banks.
So, I’ll add slowly in case the unthinkable occurs and costs go farther south.
2. T-bill ladder.
I’ll proceed to keep up the ladder though the reduce off yield has declined to three.4% p.a. within the final public sale.
3.4% p.a. is just barely greater than the three.3% p.a. I can get from a 6 months FD.
Nonetheless, T-bills are backed by our authorities.
I haven’t got to fret about exceeding $100K in worth.
SDIC. Bear in mind?
The adjustment I’ve to make is with regards to utilizing CPF OA cash.
As an alternative of putting aggressive bids at 3.5%, I shall be reducing it to three.4%.
If the cut-off yield is available in decrease than 3.4%, I’ll merely depart the cash within the CPF OA.
The break even yield, if I keep in mind appropriately is 3.33%, in case we lose 2 further months of CPF OA curiosity.
Nothing else for now.
