Tuesday, 15 November 2022

Negative Yielding Instruments/Vehicles in Singapore (2022)



Singapore Savings Bonds.

Singapore Treasuries.

Singapore Bank Fixed Deposits.

You get the picture.

In REAL terms of course!

You think why Big Daddy evaluate their shepherds like Temasek and GIC on a real rate of return after deducting the global inflation rate?

Fair right?

If not how to justify the shepherds' salaries and bonuses? 

It would be interesting to review GIC and Temasek's investment performance for 2022 next year!


We are "amateurs"...

Cannot compare with professionals you say?

Wait a minute.

Something is off....

I thought it's about whether one is financially literate or not!?

Or are you moving the goal posts by changing the definition again?


  1. Hi SMOL,

    Before clicking on your post, I was trying to second guess your responses. Guessed I got it all wrong LOL:

    - People who are stuck in analysis paralysis

    - People caught in a deer in the headlights state

    - People who puffed up with a little knowledge

    1. Unintelligent Nerd,

      I deliberately leave lots of "empty spaces" so readers can fill-in the blanks themselves ;)

      No right or wrong answers as like ink blots, we see what we want to see!

      Those who get it; get it.

      Those who can't; can't.

      Then there are those who get it but pretend they can't see... There's no point in continuing the conversation, is it?


      I'm very impressed with you - I still remember you're able to catch my floor mat analogy post super-fast!

      Gentle reminder to negotiate for stock options!

      Screw the future free-loader shareholders during IPO ;)

  2. Smol,

    People prefer negative yielding to capital loses lol.

    That's when retails like us can deploy cash into unloved assets. Short term pain for long term gain keke.

    In a similar vein, I'm impressed with those who are selling / sold their investment properties now. Not those buying. ;)

    1. Spur,

      Oh yes! I'm totally with you when it comes to investment properties ;)


      Equally, I'm impressed with Elon Musk, Jeff Bezos, and Mark Zuckerberg paring down their stakes during 2021.

      Even more impressed with the board of Twitter to take Elon Musk to court to insist Elon go through with his purchase.

      $44 billion is a lot of dry powder in this "broken clock" environment! Don't sell now must wait another 12 hours...

      The person who buys Singapore Treasuries at 4% yield with the intention that losing a guaranteed -3% loss in purchasing power is better than to suffer a further -20% unrealised capital loss is definitely financially literate!

      Especially if he includes the off-chance interest rates would go back down to 2%, there's bonus small (since short duration) capital gains ;)

      You don't get that with CPF or bank fixed deposits.

      It's tough to be a Saver in recent years....

      When bank interest rate near zero, you are "screwed". Central banks sacrifice you to bail-out the Earn More speculators...

      When bank fixed deposit rates inching up closer to 4%, we see lots of smiling senior old sheep queuing hours in the banks.

      How many are financially literate enough to know they are in fact worse off with inflation running at 7%???

      But what can they do? If they whole life on the Save More path...

      I mean if they pivot to the Earn More path in their 70s or 80s, somebody gonna get hurt....

      Just like the Ontario Teachers' Pension Fund?

  3. Investment portfolio can easily drop more than 20% in value and individual position can even drop to zero. Inflation and negative yielding is not that scary. Ask them those chopped fingers in Luna or FTX? Many of our Merdeka folks had chopped fingers. Even for government discounted singtel shares, government has to set up special arrangent for folks to liquidate discounted singtel shares.

    1. CW,

      Funny how the two of us use the same -20% drop?

      Consciously or unconsciously, our muscle memory is telling us STI can easily drop -20% from here? LOL!

      Inflation is relative. I wouldn't say not scary... If not, why Powell so insistent to raise interest rates until something breaks?

      Our inflation is similar to US. But if our inflation is closer to 10% like UK...

      OK, not regime change territory, but definitely will face backlash during election!

      If inflation is like Turkey, I don't know... I wouldn't want to have too much locked up in CPF! That's regime change territory...

      Big daddy would definitely want to avoid going there. Then again, if strengthen Singdollar too much to curb imported inflation, we risk killing our exports and tourism...

      That's the dilemma.

      Save More you're at the mercy of others.

      Why would anyone save more when that vehicle you saving is losing purchasing power more and more? Spend More makes better sense!

      Earn More?

      Not fun if the more we "invest", the more we lose...

      Then again, I often scratch me head when I see bei kambings coming to the Earn More path just with "faith", spending very little time on building their own "craftsmanship"?


Related Posts Plugin for WordPress, Blogger...