There seems to be a lot of volatility in the global equity market, and of course, Singapore included. This has resulted in billions wiped out over the past 2 weeks since National Day.

A piece of interesting news is the Swap Offer Rate (SOR) went into negative territory. The SOR which is highly correlated to the US interest rate and exchange rate, has just got an unprecedented guaranteed from US Fed Chairman, Ben Bernanke, that it will not go up for the next 2 years! This is truly risk free investing if you know how to take advantage of it. Well, one way I can think of is to refinance your mortgage to a floating SOR rate with 2 year lock it, reviewing the global situation to repackage if necessary 2 years later.

Another piece of news that grabbed the headlines is the downgrade of US debt by S&P. This …