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FED Printing machine “activated” again – what’s next for investor now?

Posted on by careyourpresent

Printing Machine activated

Many would have known that the last 1-2 weeks were very exciting! Many of the US banks collapsed!

  • Silver Gate
  • Silicon Valley Bank (that caused bank run of $USDC over last weekend)
  • First Republic Bank
  • Credit Suisse

In the last weekend with the news on the collapse of Silicon Valley Bank, the market went down. $USDC (Crypto stablecoins) also de-pegged to below $0.9. I have seized the chance to make a small trade.

My twitter post

I was hoping that the Market would collapse more so that I can utilize my 60% war chest, but it didn’t. Market went up instead. FED came to the rescue again, but it is not termed as “QE”. For those who are interested, can read about New Bank Term Funding Program. Furthermore, the interest rate dropped again.

What happened since then?

Since last Monday, what has happened?

+~$148 billion – net discount window borrowing
+~$12 billion – the new Bank Term Funding Program
+~$143 billion – borrowing for banks seized by FDIC

Total: ~$300 billion

But according to FED, the $300b spike in the Fed’s balance sheet is not QE but an increase in “Loans” via the Bank Term Funding Program and credit extensions to banks. Really?

Is this QT or QE? So do FED hike interest rate to control inflation or pump more money into system to let the ever-increasing inflation to go higher?

https://fred.stlouisfed.org/series/WALCL

What’s next?

My guess is FED will continue to print money to solve problem until one day they can’t. Guess as investor, we have to be patient and wait for the best chance to strike. Meanwhile, if there are good opportunities, I would continue to trade and earn some pocket money.

Last Monday during the dip, I bought Mapletree Industrial Trust (ME8U) at $2.25 and will be collecting around 4k worth of dividends/interest from various sources this month.

Recently I have also bought CLP Holdings Limited at 57.60 for the 1.21 dividend. Yay. almost free dividend.

Cash Rotting

Predicting that the market will goes down and timing the market pays dearly when you are holding too much cash while the market rally (like now where I am still holding 60% cash). As a result, my cash is rotting. Luckily at this market with high interest rates, I could still easily get 4% yield from Money Market Funds.

Options for Savers to earn high interest

SBAPR23 GX23040S – Singapore Saving Bonds (SSB) above 3% again. Buy or Bye?

I posted the above article on 2 March 2023. My guess now is I will buy more SSB to keep instead of Bye.

However, SSB liquidity is around 1 month. Meanwhile I still want to keep my cash liquid to capture any potential market opportunities. Hence, I will continue to keep my money via the two options below which I have mentioned previously (See post: SAVERs – How to maximize your interest and my Market Transaction/Updates). But I have took out the option for Treasury bill as the recent 3.65% is not attractive to lock up my funds for 6 months. I rather put either of the two options below.

Option 1: MoneyOwl WiseSaver – few days liquidity higher interest

MoneyOwl Wisesaver is investing in Fullerton SGD Cash Fund – Class A (SGD) which invested mainly in SGD Fixed Deposit and backed by Temasek. MoneyOwl itself is under NTUC income. It is as safe as you can get!

https://www.moneyowl.com.sg/wisesaver/

The latest rate is around 3.95%. This is liquid and you can take out anytime. Compared this to the latest 6 months Treasury Bill of 3.65%. It’s more worth it!

Insure, invest, or do a financial planning with MoneyOwl and get welcome Grab credits when you join using my referral link/code. You can use my referral link (or key in 6SHU-93MC) to get free $20-$60 Grab Vouchers when you invest with them.

To earn the first free $20, simply sign up for WiseSaver which the underlying fund is Fullerton Cash Fund – invested in rolling SGD Fixed Deposit and backed by Temasek. Then put in minimum $10 via FAST transfer to fund this account to earn full liquid ~4% yield. Since free money and risk free, why not?

Option 2: Fundsupermart Autosweep – slightly lower interest but immediate liquidity

The latest yield is 2.824% which is very decent. But the most attractive part of this option is that I am able to use the fund to trade directly and immediately. Option 1 Moneyowl WiseSaver may take a few days to transfer the money out.

Personally, I am using FSMOne.com to invest in funds & ETFs (including money market funds).

FSM is good due to the low comms and the free transfer from FSM to CDP (last year I did a few transfers and took less than a week to transfer. However, my most recent transfer was initiated on 4 Feb 2023 but the transfer to CDP was only done on 23 Feb 2023 around 2pm). Hence, user might want to take note.

If you do not have an account, you can sign up here. Please use my FSMOne referral code: P0413007.

https://secure.fundsupermart.com/fsmone/cash/autosweep-account

My humble view

Of course, although I still think the Macros are still not good and market will go down within the next few months, but FED could keep printing to print their way out for “bailout” until something break/crack.

Meanwhile, if there are good opportunities to accumulate strong companies, I would because I follow this idea “No Dividend No Buy and only buy those that I am willing to keep long term of at least 10 years. Must pass sleep test.”. (See related post: If I am a dividend investor, this is what I would do….)

Additionally, I would continue to trade and earn some pocket money. Last Monday during the dip, I bought Mapletree Industrial Trust (ME8U) at $2.25.

Lastly, I would keep calm and collect dividend/interest. This month I will be collecting about 4k worth of dividends from various shares and interests from various account. Luckily, despite that I am only 40% vested, my whole year estimated dividend/interest per month is around SGD$3447.78 per month or SGD$41373.34 per year or SGD$113.35 per day.

The above cashflow should be more than enough to cover my household monthly cash expenses of around SGD$3000 per month. Do note that these cash expenses exclude my house monthly mortgage and childcare fee. The reason why I excluded this is because my spouse and my CPF OA current total amount exceeded total loan that I still owed to HDB. Hence, I can pay off the flat anytime that I want to but I don’t wish to do so. For childcare fee, I have already locked up the sum in CDA acccount which will pay the fee via monthly GIRO automatically, hence I don’t need to bother with this too.

Of course, there is also the monthly paycheck that we have sacrificed our time to earn it.

Please also dont forget to build up your CPF account (See post: My Special Account Money (SA) in Central Provident Fund (CPF) – Cornerstone or Last Resort for Retirement?) too!

The very last but the most important point that I want to mention again and again is don’t forget to live Living a regret-free fulfilling life daily regardless of circumstances (See recent post: 11 Important Unexpected Life and Money lessons to learn from Your Children). Also see all my related posts in Care Your Present category.

Good articles that you should read!

People are drawn to dividend investing.

Why? Firstly, dividends provide a regular stream of income, allowing investors to receive a portion of the company’s profits on a periodic basis. This can be particularly attractive for individuals seeking consistent cash flow or looking to supplement their existing income. Additionally, dividend investing is often viewed as a more stable and predictable investment strategy compared to relying solely on capital appreciation.

I always write and share articles, especially on dividends which many people love them. Do read them!

Alternatively, you can go the right side of my page, there is a search bar where you can simply search “dividend” to see all my articles related to dividends!

Of course, you can search for other things that would interest you such as “Careyourpresent”, “Reits”, “Side Hustles”, “Fixed Incomes”, “Savings” etc.

CAREYOURPRESENT

Money just buy you the chance of freedom.

When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed while busying striking out in career. Of course, if you love your career, and consciously know that you are missing out the first time your child walk or talk, that’s ok, but if you are the other spectrum, please do something about it.

Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?

We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.

We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.

I have picked out some of the more life reflecting articles of the CAREYOURPRESENT series. Do read them:

You can read more about my articles on Careyourpresent via the Category “Careyourpresent” or simply click “Careyourpresent” via the main menu bar.

REMEMBER:

Love your life daily.

You have one less day with your spouse, parents, children and yourself.

Time is ticking away.

For each passing day,

Enjoy and Treasure your Life!

For those who are interested in regular updates of my articles, please join the others to sign up for my free newsletter to has my newest blogposts sent to your mailbox for free!

For real time exclusive updates on market news/life (especially Crypto markets where the news move fast, important news will be shared directly via tweets or telegrams), do also join the platforms below and engage with other like-minded people!

You may also contact me via [email protected].

If you’re looking referral codes, do check out my referral and ebook page. Give it a try and who knows? You might end up loving these platforms! To be absolutely fair to all the readers, I am definitely using all these companies and they are useful to me! Likely will be useful to you too!

At the same referral and ebook page, you can also download my free ebooks and other free resources.

For quick references to these resources, you can see below.

  • Ebooks and other useful resources on enhancing productivity (Investment, Excel, Notion etc). Currently most of it are free at this moment (subject to change).
  • WeBull: A powerful brokerage with nice free welcome gift. You can refer to my guide here on how to signup! 4 Simple step only! Click here to register a new account!
  • MoneyOwl: You can use this 6SHU-93MC to get free grab vouchers and highly safe liquid cash fund account.
  • Trust Bank – You will enjoy free FairPrice E-Voucher referral if you sign up via my referral code KNDBPEPT. Simply download the Trust Bank SG App on the App Store or Google Play Store. Tap on “Use referral code” immediately after you start the app and key in: KNDBPEPT
  • FSMOne: P0413007. Good account to keep liquid cash in autosweep and to purchase investment at low fee.
  • Hostinger: You can use this link for hosting your new website. 20% off hosting!
  • Crypto.com: Use my referral link https://crypto.com/app/h92xdfarkq to sign up for Crypto.com and we both get $25 USD 🙂
Category: Investment and Finance

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