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Surviving Low Interest Rates & Chasing the Next Big Thing

It is no secret that global interest rates have been at an all-time low. Whether you are an investor or a homeowner or both, in this write up, we explore some market observations and ideas on what to do with these presented opportunities.

1) Low interest rates

Fed has vowed to buy bonds until it sees ‘substantial’ economic progress and has been buying at least $120 billion of bonds each month. With the world central banks addicted to the printing of money, global interest rates are expected to stay low. This spillover effect has resulted in many homeowners who are on floating rate packages rejoicing over the low lending rates.

Even for conservative homeowners who prefer certainty in the monthly installment, a 4year fix rate package in the market now hovers under 1.5% per annum as opposed to HDB rates of 2.6% per annum. That translates to a total savings of $22,000 when refinancing a $500,000, 30-year loan tenor from HDB to the bank!

If you are keen on reviewing the interest you are paying on your mortgages, feel free to reach out to us as a one stop solution for loan package comparisons across the various banks!

2) The rise of Equity markets

Since a decade ago after the Great Financial Crisis until May 2021, the MSCI World index has produced a total return of 123%, not forgetting the extraordinary rebound from the COVID-19 crash in the 1Q of 2020.

While the party is largely ongoing except for a short market recoil in January and technology pullback in February, it is likely there will be more volatility in the second half of the year. Over time however, the market always rewards patient capital.

The key takeaway is to have a thoughtful asset allocation based on your personal goals, time horizon, and risk tolerance, stick with it. If cashflow allows, do consider increasing your regular investment amount and take your emotions out of investments, rather than timing the market.

Should you have spare funds lying in the bank with no intended purposes, speak to us on how better to allocate your money safely to beat the fix deposit rates.

3) Blocking out the noise of Social media

Lastly, every day on our Media Feeds, we constantly receive a barrage of posts or headlines that might compel you to act.


Take a chill pill and avoid following fads through the wisdom of influencers for they can tempt you to make moves that might not be in your best interests. The noise on social media is irrelevant to long-term investors with a well-constructed portfolio crafted for you with your risk appetite and end goals in mind.


With that, continue to stay vigilant and safe.

Pinnacle Wealth Advisory will see you in the next newsletter!

Pinnacle Wealth Financial Advisory

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