Sep 2020 Singapore Savings Bond and Weekly Updates

 

Average interest per annual for 1-year and 10-year period

Sep 2020 Issue

Average Interest Per Year (over 10 years): 0.88%

Interest for First Year: 0.24%

Application Closes: 9.00pm, 26 Aug 2020

Details on this month SSB can be found on SGS website

Singapore Savings Bonds remain unattractive at the moment due to the low interest rate environment. The 1-year interest rate for SSB is now at the lowest point since inception at 0.24%. A low interest rate environment was required to encourage spending and stimulate the economy which has been greatly affected the pandemic. But due to the low interest rate and falling Dollar, Gold and Silver have rallied more than 30% since the low in March. Just this week, the commodities have started correction. It remains to be seen if the rally is over or there is more upside.

I personally added some SPDR Gold Shares ETF as I have recently formed a satellite portfolio which is in USD. Hopefully, it can provide some hedge against the falling Dollar. I was already holding Gold for quite some time and the allocation remain less than 5% of my total portfolio. NASDAQ and S&P500 are still making new highs with stocks like Apple and Tesla carrying the whole market. I have also initiated a small position in Invesco QQQ ETF under my satellite portfolio and will share more on the allocation next week update.

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