May 2023 - SG Wealth Builder

AEM share price to smash $10 in 2023?

May 25, 2023 sgwealthbuilder 2999 Views 0 Comments

It is often said that to win in the stock market, you must buy low and sell high. Yet when a stock goes into a free fall, it takes an investor with incredible gumption to buy the stock. AEM share price (SGX: AWX) is currently in that predicament. After hitting a high of $5.25 in 31 December 2021 due to the pandemic-induced technology boom, AEM share price collapsed to the current $3.40 at the point of writing.

The rise and fall of AEM share price (SGX: AWX) are indeed intriguing yet gut-wrenching for investors. In this context, the high volatility of AEM share price (SGX: AWX) means that this stock is not suitable for retail investors looking for stable returns. Despite so, it is certainly not the endgame for the semiconductor test equipment company. Investors must realize that AEM Holdings operates in a highly cyclical industry and its business is affected by the slump in the sector.

The latest financial result only confirmed what it already known to many investors – recovery of the semiconductor will likely to take place only in the latter half of this year due to the inventory glut across the industry. In view of this, AEM share price (SGX: AWX) faces a blistering winter ahead.

personal finance

Restructuring my Singapore Savings Bonds (SSB) portfolio

May 12, 2023 sgwealthbuilder 1774 Views 0 Comments

Recently, I have restructured my Singapore Savings Bonds (SSB) portfolio by divesting two tranches of SSB which were bought with cash at 2.57% and 2.63%. The funds, consolidated with the proceeds from the sale of my previous house, were then parked in several fixed deposit accounts with an average interest rate of 3.75%.

Separately, I have also bought Singapore Savings Bonds (SSB) at interest rate of 3.07% using my Supplementary Retirement Scheme (SRS). I had wanted to purchase Mapletree Logistics Trust (MLT) using the SRS funds but decided not to after observing the declining unit price for the past one year.

Admittedly, I was late to the game as both the fixed interest rates and Singapore Savings Bonds (SSB) had started to decline in recent months. Previously, the inertia to restructure my Singapore Savings Bonds (SSB) was because I was expecting the rates to keep rising against the backdrop of the US Federal interest rate hikes. Henceforth, I was caught by surprise that the 10-year SGS yield declined so drastically since March 2023 (Singapore Savings Bonds (SSB) interest rates are based on the average SGS yields the month before).

Apparently, the market is expecting that the US Federal interest rate hike on 4 May 2023 to be the final one as the financial market is in jitters following the swift collapses of four US regional banks and the demise of Credit Suisse Bank.