Friday 15 September 2023

Finance Investment Movement 37

Two months ago, I wrote about food inflation (see here). Now, I'm sad to find out that my favourite wanton mee stall has closed for good.  There was no notice pasted during my final visit. Then when I walked past later, the spot was already vacated. The owners (mother and son) decided to retire. They chose not to inform and kept it low profile. This loss of a two decades relationship was too sudden and I would have loved to thank them properly for feeding my family. In its place now is another wanton mee stall (the irony) but this one comes with a "branded" name that operates many branches across the island. The ongoing cost of running a business is not easy. In the industry where I work, there's a message floating around that contains a list of companies with late or missed payment recently, indicated with one to three red flags. Among them, there are well known names as well as those with a long history. Something doesn't feel right. For all the reassurance that Singapore would not go into recession this year, to me, it's like a gradual decline in that direction. Next year will highlight the effects that one year of high interest rates have on our economy.

For many months, I have been investing on the safe side by putting most funds into SSB, T bills and fixed deposits. Occasionally, I do a few trades on options. These will likely remain the strategy for the rest of the year as I look to save cash and dip into high yield dividend shares when the price corrects. The Aud fixed deposit was renewed for one month at 2.81%, a terrible rate as I was hoping for closer to 3%. Then RHB came out with a 4.55% offer which is the deal I have been looking for. Unfortunately, I do not have a bank account with them and the money is already committed. Next month, I face the issue of having to park excess cash from SCB Esaver to somewhere as the current interest rate promotion will expire.

Tip: Tenbu Junmai Ginjo, fruity melon, savory rich with a medium body

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