Fixed Income and Bonds were down

When central banks started to raise their benchmark interest rates, the process causes bond prices and fixed income investments to decline. Fixed income prices move in opposite direction as interest rates. Your current investments in fixed income assets are less attractive to investors. Investors will wait for new bonds and fixed income assets (with higher interest rates) to invest in. Hence current your fixed income assets decline in value.

I see my portfolio of fixed income assets and bonds declined 9.6% from my original costs of investments.

Fixed Income and bonds Costs Mkt Value Change (%)
Temasek Bond 2.70% 6,000 6,090 1.5%
Astrea IV PE Bonds 4.35% 4,000 4,032 0.8%
Astrea V PE Bonds 3.85% 5,000 4,985 -0.3%
Astrea VI PE Bonds 3.00% 8,000 7,832 -2.1%
United SGD Plus Fund CLA SGD 10,000 9,856 -1.4%
NikkoAM SGD IG Corp Bond ETF 10,000 9,630 -3.7%
Lion-OCBC Income Fund SGD II 50,000 43,305 -13.4%
BGF Global Multi-Asset Income Fund A6 20,000 16,464 -17.7%
Total Fixed Income Investments 113,000 102,194 -9.6%

The decline in fixed income assets (-9.6%)was LESS than decline in equity investments. Equity investments have declined 19.7% from my cost of investments.

Copyright © 2022, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management | Comments Off on Fixed Income and Bonds were down

Living without collectibles

We used to buy cute items for display in our home. In the past, we bought them at local shops and when we were travelling overseas. They were irresistible. Such things include collectibles such as Lilliput Lane Cottage, Hummel’s “The Art Critic”, paintings.

When we moved to a new home, we packed them into a big carton box. We decided recently that we should give them up for a church’s jumble sales. Someone would enjoy these items and it also helps to raise funds for its beneficiaries.

At the same time, I took the opportunity to give up my three tennis racquets for the same jumble sales. I am not able to play tennis because of my health condition.

At our age, we should reduce items in our home and live with minimum. We do not want to place decisions to dispose of items onto our daughter in the future.

Copyright © 2022, limkimtong for Living Investment

Posted in Life Journey | Comments Off on Living without collectibles

Had lunch with Brother-in-law and his wife

19 June was Father’s Day. I did not have a sit-down meal with my wife’s brother and his wife since Covid-19 pandemic started in 2020. It was more than two years before we had our chance of eating together in a restaurant.

We went to Chin Lee Tea & Dine restaurant in Canberra Plaza for a Teochew cuisine. Because it was Father’s Day, the restaurant was crowded with diners that came in groups to celebrate with family members. Reservation was required to book a table.

For us, it was good to catch up with my brother-in-law and his wife. It was such a long time for this occasion. In a way, four of us were also celebrating Father’s Day on Sunday.

Posted in Life Journey | Comments Off on Had lunch with Brother-in-law and his wife

Father Figure

Did I know my father? Very little when it came to how he was feeling. He did not open up, heart to heart. He worked for most days of a week. He seldom spoke when he was home. But I knew he was there for us.

I observed his actions more than listening to his conversations, like earning an honest living, humility, and respecting his station in life. He did not compare or complain about his life. Just get on with it as honestly as possible.

My father did not read up books on being a father. He could not. He did his best in his quiet ways.

On this Father’s Day, I remember my father and thankful he raised us. As children, we did not go hungry and we went to school for formal education. What more can I ask?

This day is also dedicated to mothers and children, without them we cannot talk about being a father.

Happy Father’s Day!

Posted in Life Journey | Comments Off on Father Figure

A week of hammering

After a black Monday (13 June) for global stocks, the carnage continued into the week ended 17 June. The Federal Reserve Board of US (Fed) raised the federal-funds rate by 0.75 percentage point on Wednesday to a range between 1.5% and 1.75%. This sparks fear of recession in the US and rest of global economies in the near term.

The major market indices declined for the week as follow.

Stock Indices 10-Jun-22 17-Jun-22 Change (%)
Australia All Ordinaries 7,145.20 6,663.30 -6.74%
Nikkei 225 (Japan) 27,824.29 25,963.00 -6.69%
S&P 500 (USA) 3,900.86 3,674.84 -5.79%
Mumbai BSESN 54,303.44 51,360.42 -5.42%
CAC 40 (France) 6,187.23 5,882.65 -4.92%
Dow Jones (USA) 31,392.79 29,888.78 -4.79%
Nasdaq (USA) 11,340.02 10,798.35 -4.78%
Germany DAX 13,761.83 13,126.26 -4.62%
UK FTSE 100 7,317.52 7,016.25 -4.12%
Hang Seng (HK) 21,806.18 21,075.00 -3.35%
STI (Singapore) 3,181.73 3,098.09 -2.63%
Shanghai Composite 3,284.83 3,316.79 0.97%

S&P 500 index dropped 5.79%. Dow Jones Industrial Index and Nasdaq were down 4.79% and 4.78% for the week. STI dropped 2.63%.

The year-to-date changes as at 17 June are shown in the table below.

Stock Indices 31-Dec-21 17-Jun-22 Change (%)
Nasdaq (USA) 15,644.97 10,798.35 -31.0%
S&P 500 (USA) 4,766.18 3,674.84 -22.9%
CAC 40 (France) 7,153.03 5,882.65 -17.8%
Dow Jones (USA) 36,338.30 29,888.78 -17.7%
Germany DAX 15,884.86 13,126.26 -17.4%
Australia All Ordinaries 7,779.20 6,663.30 -14.3%
Mumbai BSESN 58,253.82 51,360.42 -11.8%
Hang Seng (HK) 23,397.67 21,075.00 -9.9%
Nikkei 225 (Japan) 28,791.71 25,963.00 -9.8%
Shanghai Composite 3,639.78 3,316.79 -8.9%
UK FTSE 100 7,384.54 7,016.25 -5.0%
STI (Singapore) 3,123.68 3,098.09 -0.8%

Nasdaq had lost 31.0% from the start of 2022, while S&P 500 lost 22.9%. These were bear market territories. STI is now down 0.8%.

Copyright © 2022, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management | Comments Off on A week of hammering

Black Monday – 13 June 2022

The bad news continued on Monday, 13 June. Stock market indices dropped further.

Stock Indices 10-Jun-22 13-Jun-22 Change (%)
Nasdaq (USA) 11,340.02 10,809.23 -4.68%
S&P 500 (USA) 3,900.86 3,749.63 -3.88%
Hang Seng (HK) 21,806.18 21,067.58 -3.39%
Nikkei 225 (Japan) 27,824.29 26,987.44 -3.01%
Dow Jones (USA) 31,392.79 30,516.74 -2.79%
Mumbai BSESN 54,303.44 52,846.70 -2.68%
CAC 40 (France) 6,187.23 6,022.32 -2.67%
Germany DAX 13,761.83 13,427.03 -2.43%
UK FTSE 100 7,317.52 7,205.81 -1.53%
STI (Singapore) 3,181.73 3,139.35 -1.33%
Shanghai Composite 3,284.83 3,255.55 -0.89%
Australia All Ordinaries 7,145.20 No trading

Nasdaq slumped 4.68% followed by S&P 500 Index declined 3.88%. Singapore’s STI was down 1.33%.

The year-to-date changes as at 13 June are shown in the table below.

Stock Indices 31-Dec-21 13-Jun-22 Change (%)
Nasdaq (USA) 15,644.97 10,809.23 -30.9%
S&P 500 (USA) 4,766.18 3,749.63 -21.3%
Dow Jones (USA) 36,338.30 30,516.74 -16.0%
CAC 40 (France) 7,153.03 6,022.32 -15.8%
Germany DAX 15,884.86 13,427.03 -15.5%
Shanghai Composite 3,639.78 3,255.55 -10.6%
Hang Seng (HK) 23,397.67 21,067.58 -10.0%
Mumbai BSESN 58,253.82 52,846.70 -9.3%
Australia All Ordinaries 7,779.20 7,145.20 -8.1%
Nikkei 225 (Japan) 28,791.71 26,987.44 -6.3%
UK FTSE 100 7,384.54 7,205.81 -2.4%
STI (Singapore) 3,123.68 3,139.35 0.5%

Nasdaq had lost 30.9% from the start of 2022, while S&P 500 lost 21.3%. These were bear market territories. STI was barely above water, treading at 0.5% above level.

Copyright © 2022, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management | Comments Off on Black Monday – 13 June 2022

Stocks on downward trend

10 June closings for most stock indices were down from 27 May closing.

Stock Indices YTD Change 27 May YTD Change 10 Jun
Nasdaq (USA) -22.5% -27.5%
S&P 500 (USA) -12.8% -18.2%
Dow Jones (USA) -8.6% -13.6%
CAC 40 (France) -8.9% -13.5%
Germany DAX -9.0% -13.4%
Shanghai Composite -14.0% -9.8%
Australia All Ordinaries -4.7% -8.1%
Hang Seng (HK) -11.5% -6.8%
Mumbai BSESN -5.8% -6.8%
Nikkei 225 (Japan) -7.0% -3.4%
UK FTSE 100 2.7% -0.9%
STI (Singapore) 3.4% 1.9%

Nasdaq was the worst. It declined a whopping 27.5% from the start of this year. It was followed by S&P 500 index. It declined 18.2%. Rising interest rates and fear of runaway inflation were main reasons for this downward trend. The war in Ukraine is making it worse for the world.

The Straits Times Index (STI) was only up 1.9% from start of 2022. It was up 3.4% in May 2022.

The year-to-date changes as at 10 June are shown in the table below.

Stock Indices 31-Dec-21 10-Jun-22 Change (%)
Nasdaq (USA) 15,644.97 11,340.02 -27.5%
S&P 500 (USA) 4,766.18 3,900.86 -18.2%
Dow Jones (USA) 36,338.30 31,392.79 -13.6%
CAC 40 (France) 7,153.03 6,187.23 -13.5%
Germany DAX 15,884.86 13,761.83 -13.4%
Shanghai Composite 3,639.78 3,284.83 -9.8%
Australia All Ordinaries 7,779.20 7,145.20 -8.1%
Hang Seng (HK) 23,397.67 21,806.18 -6.8%
Mumbai BSESN 58,253.82 54,303.44 -6.8%
Nikkei 225 (Japan) 28,791.71 27,824.29 -3.4%
UK FTSE 100 7,384.54 7,317.52 -0.9%
STI (Singapore) 3,123.68 3,181.73 1.9%

Copyright © 2022, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management | Comments Off on Stocks on downward trend

Interest rate is 2.71% per year – Singapore Savings Bonds

The latest issue of the Singapore Savings Bonds (SSB) is an improvement over the earlier one.

Issuance date Average annual rate of return % Max offered ($)
June 2022 2.53 350,000,000
July 2022 2.71 600,000,000

Average annual rate of return when one holds the SSB until maturity (10 year later) is 2.71% for the July 2022 issue.

The issue size is also increased to $600 million (from $350 million).

The application end date is 9.00 pm on 27 June 2022 (Mondays to Saturdays 7.00 am to 9.00 pm).

Copyright © 2022, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management | Comments Off on Interest rate is 2.71% per year – Singapore Savings Bonds

Inflation – How to cope?

Inflation eats into our earned income. Our income may not catch up with price increases of items such as food and electricity & gas. Singapore’s Core Inflation rose 3.3% in April when compared to last year’s.

I adopt three approaches to this problem.

  1. Find alternatives

Instead of turning on air-conditioners, we use ceiling fans.

Instead of driving a car, we ride on buses and trains.

Instead of eating a lot of meat, we eat more vegetarian food.

Instead of eating at restaurants, we eat at coffee shops.

  1. Reduce consumption or purchases

Instead of buying new things, check whether I can continue to use existing ones e.g. checking my wardrobe.

Instead of calling for workman to service, can we live with not-too-perfect condition?

  1. Spend less on other items

Since my income and savings are limited, I could cut back on other purchases to cover for increases in prices of daily necessities. The less I spend, the more I have to cover essential items such as food and electricity bills.

Overseas travel is one item to cut-back since this outlay is huge in relation to daily necessities.

Copyright © 2022, limkimtong for Living Investment

Posted in Financial Management | Comments Off on Inflation – How to cope?

Looking back at my younger days

I belong to the generation that started with black and white photographs progressing to colour print photographs and then digital photographs.

I have been in constant contacts with a group of secondary school classmates back in the early 1970s. Two days ago, I sent some black and white photographs to my friends. They were photographs of our days together back in the 1970s. My friends followed up with sending some colour photographs of us when were in our late teens and early 20 years old.

We spent sometimes on WhatsApp trying to identify some individuals in the photographs. This was fun. The photos were not focused and blur on reproduction. This is what we do when we get to our age. Memories of past fade with time. The good thing is that we have composite memory banks to help us tease the information together.

Copyright © 2022, limkimtong for Living Investment

Posted in Life Journey | Comments Off on Looking back at my younger days