Today I quickly sms my friends and asked them if they would like to go Australia in Dec, in time for their summer farm stay. Of course, the rates were the highlights. After I sold my Aussie dollars at $1.29 last year, Aussie has been coming down especially after the recent 100bps rate cut.
The fall in commodities prices and unwinding of YEN carry trade has brought down major currencies and indices to their multiyear lows.
Indeed, nothing is safe other than gold these days. Putting our money in Singapore dollars deposit will yield nothing more than 1.8% even if you are depositing a million dollars in UOB million dollar deposit promotion.
Of course, the personal banker might sell you something that yields more, but at current market and prevalent fear, no one would dare take it.
Most would rather suffer a real loss of 5% after adjusting for inflation.
Mr. Oei Hong Leong estimated that market would go down even more, as it is the end of the beginning. He recently made headlines buying AIG at rock bottom and selling for a $7 million dollars profit, before donating it.
Fear is clearly prevalent in the market, everybody is anticipating the market to go down further. However, today, I bought 5 lots of STI ETF (CPF) when STI nearly reach 2000 points. Although 90% of the investors are probably selling, I do know that like all crises, this one will eventually be resolved and the bull run will resume.
Human greed is never ending, there will be more market run up and crashes to come.
Do not despair. Rather, find the courage to be greedy now.