Tuesday 15 November 2022

Finance Investment Movement 27

The theme of the month so far is the continuation of last month; a buffet of investment options for cash holders. It's becoming more impactful as many of us would have felt the purchasing power of our money diminishing. So instead of standing idly by, it's best to sought out assets to retain value.

I did several moves to diversify out my investment timeframe and objectives. One was to add the October SSB by $7000. The November edition looks tempting at 3.47% average and the probability tilts towards another application. I aim to purchase enough tranches so as to enjoy uninterrupted monthly payout for the next ten years. It feels like a mini annuity plan that's custom designed and hopefully gives $250 per month eventually. Another was to subscribe to T-bill that yielded 4% and caused a system outage. I reckon retirees and those with excess OA in CPF were the ones tuning up demand this time round. In the end, I was allocated 49% out of $6000 (=$2940.15) that I applied. My plan was to capture short term interest rate spike and enjoy while it lasts.  It would be awesome if it can hit 5% but the path to get there is uneven given the overwhelming response from investors. Why am I optimistic? While the US inflation situation seemed to be peaking, it does not take away the fact that it's still very high. Hence I expect the Fed to continue raising interest rates and that would coax short term rates higher. Cross my fingers, the US economy would then slowdown and go into mild recession, thereby bringing the market and rates down, probably from mid 2023.

My assessment of the stock market presents a see-saw pattern of indecision. There are rich pickings if one doesn't mind the volatility and possess holding power. With this in mind, 1000 shares of FCT was bought at $1.94 to lower average cost. Next was to do a short strangle on Starbucks options since I expected a narrow price range. The call was almost activated as it came within a few cents of the strike price. Either way, I would have sold off quickly if that happened. This trade collected a premium of US$65. It was followed by selling a Disney put. But the markets taught me a lesson. There was much speculation among analysts that company results would be spectacular. What I learnt is the so called "experts" can say what they want to hear but it's better to do due diligence. Disney reported a poor set of numbers and the stock plunged 12% immediately at the opening bell, touching my strike price. Then the price the next day rebounded due to the announcement of less than expected US inflation rate. So I collected another US$24, not bad for a nice coffee break.

Tip: Katsuyama Tokubetsu Junmai En, fragrant rice, pleasant and clean after taste


  1. FCT at below $2 is definitely a buy given its stability and resilience in the current market environment. I missed this buying opportunity last time and I hope to be able to capture it soon!

    1. Hi, I have the same sentiments. It does look likely that opportunity will still come by as I feel the market is not out of the woods yet. Good to hold for the longer term.