Stocks ended October in the green although the performance was pretty uneven among sectors. Value stocks outperformed, as shown by DJIA up +14% MoM vs S&P 500 up +8% and Nasdaq 100 only up +4%.
Hopefully the US Fed doesn’t kill the party when they announce their rate decision later today. The market is widely expecting 75 bps increase but are more concerned about guidance, i.e. whether the Fed sounds hawkish or dovish. US jobs report (JOLTS) came in higher than expected so my hopes aren’t high that the Fed will turn more dovish.
My strategy for now would be to continue DCA into core ETFs with half the amount of monthly contributions to investments and let the remainder just accumulate in cash. As inflation stays high and interest rates rise, I’ll be looking for more safe ways to get better returns on idle cash. Currently, the main vehicle I’m using are Singapore Savings Bonds (SSB), which I’ve been writing about more frequently....
