My SRS and CPF-OA are accounted seperately from my stock portfolio
SRS Transaction
Sold entire UOB position on 5 Aug 2024. Turn pessimistic on SG banks, as US Fed rate may be cut starting Sep 2024.
On the funds from the sale, I am undecided on whether to put them in Singapore Savings Bond (SSB) or Cromwell Reit.
CPF-OA Transactions
I had monies coming back from the maturity of T-Bills. Had bid 1-year T-Bill at 3.5% ecently but it was unsuccessful.
Also sold AEM at a loss of $1.56. I am scared off by the drop in price. Probably should have cut loss earlier.
The funds are deployed to
- NikkoAM-StraitsTrading Asia ex Japan Reit ETF (CFA) at $0.775. Reits will benefit from the upcoming US Fed cuts
- NikkoAM SGD Investment Grade Corporate Bond ETF (MBH) at $0.769.
I did not use the funds to buy T-Bills, as its yield (on the last 6-mth T-Bill) dropped to 3.4% and the yield may dropped further, if US Fed interest rate drops more in future.
MBH ETF should provide 3+% interest for sometime, given its weighted duration of 5.6 years. Furthermore, its price may benefit from decline in SG interest rate.
Also recently sold index fund holding (Infinity Global Stock Index C SGD), bought using CPF-OA, a few years ago. The monies have not returned to CPF-OA yet.
On US Fed Rates
Current Fed rate is 525-500. Based on CME Fedwatch, Fed rate may decline by 1% at end of the year. I am not certain if Fed rate will decline by this extent. To be conservative, I assume 0.5% cut by end of the year and probably another 0.5% cut by mid-2025.
Source: https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
No comments:
Post a Comment