Feeling the squeeze as prices soar? Build a portfolio to safeguard your travel plans!
* This article is a work of fiction. Any similarities are purely coincidental.
I recently went to Singapore with my family to visit my long-lost cousin.
When my cousin arrived at the airport in a cool Tesla, she asked me, "This kid has been working for years. Why hasn't he found a partner to bring to Singapore?"
'Well, work is so busy that finance workers don't have time to fall in love. I have to watch the Hong Kong stock market in the morning and the U.S. stock market in the evening. I basically keep working around the clock!"
As soon as my cousin heard I was in finance, she took an immediate interest.
"I have a little savings now, and I want to travel freely as soon as possible."
"However, I have been busy with my work and have no time to research, so I just bought some money funds! Not sure if that is sufficient.. though."
In that case, I went on to read up a little on money funds.
Although the money funds may be considered potentially stable and lower risk, its return is not as high, and the annual return rate is between 2% and 3%.
(Returns that are accurate as of August 2022 and not indicator of future results)
What's more？ Singapore's inflation rate in January 2023 has risen to 6.6%! Even if my cousin's travel fund is deposited in the bank, or bought various currency funds, it can't beat the current inflation level!
Hearing this, my cousin was a little upset. She was counting on this money to fulfill her dream of traveling around the world.
I glanced at her Tesla: "Wealth is far away, just around the corner. Maybe Tesla can make you some money back."
I did the math: If I have taken about S $20,000 from my travel fund at the beginning of the year and bought 137 shares of $Tesla(TSLA.US$, which was trading heavily in the U.S. stock market at the time, I would have made a 40% return!
After my research, I have selected a few options that my cousin can achieve:
1. Enjoy Additional Investment Income from US Stocks ![]()
My cousin has the option of buying shares in a company like Tesla, which is a leader in electric vehicles and renewable energy solutions and has been on a high growth trajectory for the past few years.
If you are particularly optimistic about the new energy vehicle industry in which Tesla is located, or the investment opportunities in other popular industries, you can search the "Industry Chain" on the mobile APP of moomoo to find the relevant information!
2. Enjoy Potentially High Returns from SG Companies ![]()
SG market is relatively reliable among global markets. Despite the global downturn in 2022, the $FTSE Singapore Straits Time Index(.STI.SG$gained 4.09%^.This is because major SG companies like UOB and CapitaLand have expansive business operations in Southeast Asia, which provides ample opportunities for their growth. As a result, investing in SG blue-chip stocks may potentially help you obtain consistent returns.
^Souce: moomoo
3. Realize Cash Flow Appreciation from Money Fund ![]()
As a risk-averse person, my cousin may consider keeping her money fund and invest in government bonds, corporate bonds and other bonds. This segment can potentially provide a steady income and can therefore be an asset allocation component.
Want your savings to outperform inflation, or want to get a higher rate of return and let your travel fund grow bigger and bigger?
If you ignore money, money will ignore you. ![]()
Come and design your own investment portfolio!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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mr_cashcow : You forgot about crypto
Zaith : True words
Cui Nyonya Kueh : now want to buy Tesla too late. people bought during the dip
102068205 : Current relatively good interest
101814969 : For stable income generating and potential growth, I would not go for crypto and those fads that are tempting but more speculative in nature.
If I can, I would go for money mkt and short term local or regional bonds as a stabilizing base and put money in dividend yielding SGX blue chips. The remaining money would potentially goes to fundamentally strong chips such as Apple and BABA (HKEX) for growth potential.
I would call this a fundamentally conservative approach in this time of volatility and geopolitical tensions that can affect us financially if we're not careful with our money.
care to comment? Thanks
Mew2 : Lots more growth potential (alongside higher volatility) in foreign markets like US or China than SG stocks.
Li Mu Bai : Some one has wisely cautioned investors not to forget that Tesla is a car manufacturer albeit a pioneer in the EV sector. It is facing intense competition now not just from other EV manufacturers esp those in China on which it's growth hinges, but from traditional ICE car makers like Toyota, VW, etc which are working overtime to catch up on EV products. It's now fairly regular promotion pricing reflects this. So even if it's share price looks cheap relative to historical highs, I would be wary not to get to enthusiastic.
Talking Bull : Hold Crypto currencies for long term gains
102438196 : Gold so ok bah
104058421 :