Rate cuts and my interest in alt funds.
I've already written quite a lengthy article on potential rate cuts and other interest related concerns, so ill keep this one shorter.
The next FED rate cut will be held in September 17-18th, with the previous meeting in June having large implications of an upcoming rate cut, hence the rate cut probabilies have been raised to 100%.
Sources:
With a basically 100% expectation of a cut, im expecting the much beloved $Fullerton SGD Cash Fund (SG9999005961.MF)$ and the like to reduce in yield, like it has been for quite awhile now.
As cash plus yields decline together with the past couple week's market volatility, ive opted to buy the dips on some sectors/markets, using funds like $Fidelity Funds-Global Technology Fund (LU1046421795.MF)$ and $AB International Health Care Portfolio (LU0058720904.MF)$ .
Ill also put some allocation into alternative funds like $M&G (Lux) Episode Macro Fund (LU1670713921.MF)$ or $Aviva Investors Multi-Strategy Target Return Fund (LU1206712785.MF)$ to lower portfolio volatility and to give slightly higher returns than the cash plus funds as thats what they try to do.
I'll probably not invest in bonds as im not too interested in them nor am i too educated on them.
Currently the Singapore Savings Bonds yield sits at 3.1%, which is similar to the money market fund rates, the performance of asian soveriegn bonds arent too stable in the past couple years either, so im not interested in investing in them either, especially since cash plus is better.
Also since im considered quite young, i dont rlly need too conservative of a bond allocation, i do have some reits like $Mapletree Ind Tr (ME8U.SG)$ , but those dont take up too much of my portfolio either.
Lastly, Ive never touched US treasuries, i know they're quite popular and used as a benchmark but as ive mentioned id rather just put into cash plus if i rlly wanted smthn with similar yield and better liquidity.
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Yr 3 Banking & Finance student w 2 yrs forex, 6 months stocks. Moo earnings hub enjoyer
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3rdDay : This alternative fund is purely capital gains right not dividend payout.
Thy GoD OP 3rdDay : it's an accumulation fund, not dividends.
an alternative to the alternative could be bond funds as they usually will pay dividend and serve abt the same purpose.