Am I ploughing more cash into stocks and/or bonds now?

Am I ploughing more cash into stocks and/or bonds now?

According to the Straits Times, the probably of an upcoming recession is 98%. This has been my assumption earlier this year. I have written about the US bond yield curve being inverted in July and it continues to be inverted now. Based on almost 50 years of historical data, whenever the 10Y and the 2Y Treasury yield inverts, a recession is on its way.

Being a prudent investor,

  • I have re-balanced my portfolio. Sold companies that were loss making. Buy and hold only companies that makes money during a recession.
  • I also reduced my HK and US holdings and went heavy on Singapore, believing Singapore will be the beneficiary of smart money leaving HK.
  • I have cut all margin financing so that I am not borrowing from anyone.

No, I am not ploughing more cash into stocks and bonds till the market conditions change.

The spare money that I have, I park into SSBs and T-Bills.

In the meantime, for my long term investments, I wait.

  • I'm a remisier with Maybank Securities, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please open a trading account to become my client; It's free!