Personal Finance
What Bond Buying Taught me about Car Buying
By Investment Stab  •  February 1, 2016
Buying a Car in Singapore can follow the same principles as Buying a Bond.
Mainly it is not the car but the Certificate of Entitlement (COE).
COE prices are like Bond prices.
Although COE are not affected by interest rates movement like bonds, they follow similar buying patterns in terms of future expected prices.

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Bonds
If you expect interest rates to be going up, you will want to hold short-maturity bonds so that your money will be returned to you fast and you can re-invest it back into new higher interest paying bonds.

Cars - mainly COE
If you expect COE to go down, buy ...

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By Investment Stab
We are a group of Singaporean students who are curious and interested in Finance. As we dive deeper into this area in search of more knowledge, the more debates and differences we have. We also realised that financial literacy is not strongly inculcated in the younger generations, leading to numerous costly mistakes. Some of such includes believing in "high profiting" scams such as land banking and buying unnecessary investment schemes which are often motivated by the salesperson's personal interest ...
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