I produced a YouTube video yesterday after someone alerted me to buy some bank stocks.
I thought the stock market had crashed.
Did not look at stocks for 2 weeks prior to the alert with all that has been going on in my life.
Anyway, if you have not seen the video, here it is:
It isn’t a crash.
A steep correction but not a crash.
This blog post is more a reminder to myself what to do next because I am aware that apathy towards financial matters has set in for me.
If I don’t put this down in writing, I might just let inaction take over.
1. Bank stocks.
I have said that it is a good idea to invest in our local banks because they are well run and well capitalized.
They have the ability to pay good dividends.
More importantly, they are willing to do so.
Further decline in their stock prices would be an opportunity to add to my positions.
For DBS, I am looking at $32.50 and $30.00 to add.
For UOB, I am looking at $28.00 to add.
For OCBC, I am looking at $13.00 to add.
I am already substantially invested in all three banks.
So, I will add slowly in case the unthinkable happens and prices go farther south.
2. T-bill ladder.
I will continue to maintain the ladder although the cut off yield has declined to 3.4% p.a. in the last auction.
3.4% p.a. is only slightly higher than the 3.3% p.a. I can get from a 6 months FD.
However, T-bills are backed by our government.
I don’t have to worry about exceeding $100K in value.
SDIC. Remember?
The adjustment I have to make is when it comes to using CPF OA money.
Instead of placing competitive bids at 3.5%, I will be lowering it to 3.4%.
If the cut-off yield comes