Showing posts from April, 2021

Investing in 2.96% p.a AAA Bond

Ops !! sorry, clickbait ... :D  Not investing in any corporates or government issued Bond but Mrs. STE and I just doing the voluntary contribution to our CPF accounts recently. We can't do the  RSTU( Retirement Sum Top Up)  since our SA (special account) already exceeded the FRS ( and BHS for MA already above $63K) but we still can do the VC3C ( Voluntary Contribution to 3 accounts ). The amount will be split into SA and OA with average interest rate of around 2.96%. For us, this is like 4 years bond with 2.96% coupon rate p.a since we still have 4 years to reach 55 years old. This might not be a good option for those who are still young and have many years to reach 55 since the top up is "irreversible” not like investing in bond where you still can sell it in secondary market when you need the money.  Alternatively, you may consider to top up your SA or MA if both account still not reaching the FRS or BHS since you can enjoy the higher interest rate (4% for MA/SA) and als

Regression to Trend

  Regression to Trend: Another Look at Long-Term Market Performance   < source :> " About the only certainty in the stock market is that, over the long haul, overperformance turns into underperformance and vice versa. Is there a pattern to this movement? Let's apply some simple regression analysis (see footnote below) to the question. Below is a chart of the S&P Composite stretching back to 1871 based on the real (inflation-adjusted) monthly average of daily closes. We're using a semi-log scale to equalize vertical distances for the same percentage change regardless of the index price range. The regression trendline drawn through the data clarifies the secular pattern of variance from the trend — those multi-year periods when the market trades above and below trend. That regression slope, incidentally, represents an annualized growth rate of 1.88%." <Image> Is the Stock Market Cheap?  &l
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