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SRS Portfolio 10 April 2020

Happy Good Friday! Hope everyone is staying safe and being socially responsible! 

It was a short and crazy work week with many late night calls - it seemed that i am more busy working from home. 
Sometimes don't even have time for toilet breaks, resulting in no trades done for my SRS account. 🤔

The portfolio valuation continue to stabilise and you can see a snapshot based on yesterday's closing price.


As mentioned in my last update, i will do a top up of my SRS account and i did that today.


With that, my SRS cash is now standing at $98,702.

On a side note, i read some posts that people are maxing out their credit lines to invest in the stock market... here is my friendly advice:

If you don't know what you are doing, i would say "don't even try".  

If you are savy and know what you are doing, you may borrow from your own CPF money at 2.5% (which i am not doing) or you find a even cheaper source of borrowing (from equity housing loans - which is what i have used)

If you are using a more expensive leverage such as share financing or CFDs, again, i caution that unless you know how to 'cut loss' and are nimble, you may be subject to margin calls if the market turned against you. Margin calls are no joke because you must top up with [24] hours or risked your stocks being "sold off" at rock bottom prices. 

If you are using credit card or overdraft facilities, my kind advice is "don't even think about it". A lot of people get into debts that they can't even climb of of the hole from when they use such expensive short term financing. You seriously believe you can beat the market by 24% per annum on a consistent basis? I really don't mind lending to you if you are credit worthy but the risk reward of using credit card financing is definitely not worth it.

Happy Staying at Home and Stay Away from Covidiots!

4 comments:

  1. Thanks for the post.

    I might take cc loan, but the rate I saw seems manageable.

    10k loan, 3 years to pay back will cost 11.2k, which is ard 12%.

    Is my calculation flawed?

    https://www.dbs.com.sg/personal/personal-loan-calculator.page

    ReplyDelete
    Replies
    1. Hi L, I don’t think your calculation is flawed. I am highlighting the challenges of generating the returns to cover interest cost. I didn’t even mention much about the mental stress that comes with it :)

      Good luck!

      Delete
  2. what is the equity housing loan you are taking?

    ReplyDelete
    Replies
    1. Borrow from the bank using your home as collateral lor.. any bank will do... mine was SCB

      Delete