Tuesday, February 20, 2007

Increasing my cash position

Increasing my cash position

Dear friends,

I just like to let you know that I am increasing my cash position and my target is to have about 85% cash. So, as and when possible, I will be selling out the stocks, including those on my watchlist.

The reason for the target is to gear myself up, to be cash rich when good opportunities arises. Over the last 2 weeks, I have not been able to convince myself of any good company at attractive prices, both in the US and SGX market. Having said that, I will start buying again, when there are good companies at attractive prices.

If you are curious, I am "parking" my cash in a local insurance company's money market fund. Hopefully, the interest earned will at least beat the inflation and not cause my hard-earned monies to shrink... do email me, if you wanna to find out more...

As always, this is not a call for you to do anything at all. :)

Have fun investing...

Warm regards,

Fu Chin

Disclaimer: Completeness, accuracy and opinions based on information and comments mentioned via this website cannot be guaranteed. Investors should always conduct their own research before making investment decisions.

15 comments:

Anonymous said...

Hi Fu Chin,

What kind of interest rates are you getting for your cash? I share the feeling that the mkt may correct and that it would be good to have more cash. Only problem is deposit rates are all very low.

Lim Fu Chin said...

Hi Anonymous,

Thanks for leaving the query at the blog. :)

I am getting about 3% (non-guaranteed) for leaving my spare cash in money market funds.

Agree that deposit rates at bank does not quite beat the inflation... :x

Of course, if any of you blog readers know of good bank rates, do feel free to post it here to share with others... I am not updated with all the bank's rates... :)

Warm regards,
Fu Chin

Anonymous said...

T bills seem to be about the safest high interest rates currently. Think it is still in the 3.0x% pa range. So, I'm parking spare cash in it till the rate drops below 3%. Only problem with t-bills is that it is a bit "lay-cheh" to go to the bank to take up the issue.

Dragon said...

i am surprise abt your cash holding? wonder is there a change in the economy for now?
with golbalisation, china india and now vietnam ... i feel this going to be the longest bull run in history...more so as most govt are doing the right thing, wonder are u not jumping from a moving train b4 the destination?

Fu Chin said...

Hi dragon,

Thanks for leaving the comment on the blog.

You are right, I may have jumped off before the destination.

In fact, I have on 2 separate occasions and 2 different stocks, jumped off (sold out) at 25% of my gains.

Then, the 2 stocks went on further to 50% gains. I am constantly reminded of the pain *ouch* as I keep them on my watchlist. :)

About the economy, I am no expert! From some of the Yahoo!Finance reports I read about the US economy, it does not seem too pretty.

Hope that your investment continue to be on the rise...

Regards,
Fu Chin

Leaver said...

Hi, i always check FD rates at this website.
Hope others can benefit from it

http://www.qotion.com/Fixeddeposit.aspx

Cheers,
cloudsoon

Lim Fu Chin said...

Dear cloudsoon,

Thank you for leaving the link. It is indeed a good site, to check the rates. :)

Warm regards,
Fu CHin

Aragorn said...

most of my stocks are the dividend yielding, safe, types. should be able to weather any correction.

i do have a fair bit of cash reserves to take advantage of the impending correction.

i park my cash in bank deposits, money market fund, fundsupermart.com cash account.

Aragorn said...

despite the widely anticipated correction i loathe to churn my stocks as that would incur loathsome brokerage charges.

& also i wouldn't be entitled to the dividends payable if i sell before the counter xd-ed.

there are some safe dividend yielding good cash flow stocks that one can carry through the corrections but being unglamorous they may not suit everyone's risk appetite.

Aragorn said...

i guess you must be park your cash with ntuc income since you seem to be a fan of tan kin lian?

that's not very liquid though, how long does it take to withdraw your cash?

:)

Lim Fu Chin said...

Dear Aragorn,

Thanks for sharing your experiences, it is definitely a good learning for me.

You are right, I park my money into the fund you mentioned. It takes a couple of days to liquidate the funds.

I find the link from leaver / cloudsoon (http://www.qotion.com/Fixeddeposit.aspx) to be very useful as well! :)

Warm regards,
Fu Chin

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