April 2020 Singapore Savings Bond and Weekly Updates

Average interest per annual for 1-year and 10-year period
Apr 2020 Issue
Average Interest Per Year (over 10 years): 1.63%
Application Closes: 9.00pm, 26 Mar 2020
Details on this month SSB can be found on SGS website

The Fed has cut interest rates to near zero and it will be interesting to see how low the Singapore Savings Bond can go next month. I subscribed to last month SSB to park some of my savings which was before the market crashed. As the market prices have significantly came down, I will be redeeming some of my holdings in SSBs to unlock these cash. These cash will only come in next month.

I did my first purchase for the year on Friday the 13th, but unfortunately it was not the bottom yet, and the market continued falling in the following week. Some of the REITs have already dropped more than 50% from peak. It was nerve-wracking to see your stocks falling more than 10% after you bought it. I was very tempted to buy again but I know that I need to pace my purchase if not I will run out cash very fast. In end, I held back and waited.

This market crash does not look like it will be over soon. This is not just a heath crisis but also a potential global recession which we are looking at. My current objective is to ensure that I have sufficient cash to continue purchase of stocks throughout the year. These funds will mainly come from redeeming some my SSBs holdings and salary. If nothing goes wrong, I am hoping to do at least one purchase every month. The main targets are defensive stocks which are relatively recession-proof or low-beta stocks. Banks are very attractive but I think there are still room for prices to come down.

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