USD investment / deposit

[ahuafreak]

Hi folks,

Have some amount of USD. Any suggestion on where to invest / park to maximize the return? Thanks in advance

 

[Shiny Things]

Hi folks,

Have some amount of USD. Any suggestion on where to invest / park to maximize the return? Thanks in advance

1) Why do you need to keep it in USD?
2) When will you need to use the money?

 

[lordofthering]

Paxos BUSD is having 15% interest rate for 1 month (they renew and also they have flexible deposit of 5%). do your own research about it. The risk/return trade off is great imo

I personally put some USD into it

 

[ahuafreak]

1. No specific reason. Looking at appreciation in the future.

2. No specific time frame. Looking at long term investment.

1) Why do you need to keep it in USD?
2) When will you need to use the money?

 

[ahuafreak]

It's crypto right?
Prefer something conventional e.g. low to medium risk.

Paxos BUSD is having 15% interest rate for 1 month (they renew and also they have flexible deposit of 5%). do your own research about it. The risk/return trade off is great imo

I personally put some USD into it

 

[Shiny Things]

1. No specific reason. Looking at appreciation in the future.

2. No specific time frame. Looking at long term investment.

1) Don't do this. You have absolutely no insight into where USDSGD might go in the future; you're just betting on a coin flip. If the USD weakens for whatever reason, you're going to lose a ton of money.

2) See above. Convert it back into SGD.

 

[musicaltuna]

@shinythings

isn’t USD known to be a more “universally-recognised” currency as opposed to SGD? i’ve always thought that the sgd was pegged to the usd so it isn’t a bad thing at all to hold USD. conversely, the sgd could also weaken a lot against the usd - which is what we’ve been seeing over the past 2 years?

there’s also gonna be a spread lost during conversion back so if those usd could be used to be invested in any usd-dominated funds/bonds/equities and be making returns, why convert back to sgd?

pardon my ignorance, just trying to understand better the reasoning behind what you recommended.

 

[BBCWatcher]

If it's genuinely long-term investing then these U.S. dollars could be exchanged for something that happens to be quoted in U.S. dollars but that isn't any currency. One notable example is a low cost global stock index fund.

 

[lordofthering]

It's crypto right?
Prefer something conventional e.g. low to medium risk.

It should be low risk as the risk is you getting hacked without 2fa. Since it guaranteed and backed by real usd then should be low risk. That why I suggest you to read up before investing in that BUSD.

They are able to get this rate because they loan it to crypto margin traders who are paying a premium

I agree that we are no economists and shouldn't speculate on forex. But if you have extra money then no need to change back sgd. Just leave there as a hedge

 

[limster]

9 months back i had a US$ cheque. since rate was USD:SGD rate 1.35 and it looked like it was going up to 1.4 because Fed was increasing rates, I kept it in US$ via a 2.5% USD FD. Turns out rates were cut but US$ still increase anyway. The FD has matured and because there was a sale in the stock market, I used up my US$. otherwise at 1.4 I would just change it back to SGD.

 

[ahuafreak]

Thanks. Will consider. Perhaps coverting half back to SGD

1) Don't do this. You have absolutely no insight into where USDSGD might go in the future; you're just betting on a coin flip. If the USD weakens for whatever reason, you're going to lose a ton of money.

2) See above. Convert it back into SGD.

 

[ahuafreak]

Any recommendation? I remember reading some time ago about purchasing bonds and US Treasury but not knowledgeable in this area.

If it's genuinely long-term investing then these U.S. dollars could be exchanged for something that happens to be quoted in U.S. dollars but that isn't any currency. One notable example is a low cost global stock index fund.

 

[ahuafreak]

Oic. Any recommendation on FD USD? Seems that majority of the banks have removed the promotion since last week.

9 months back i had a US$ cheque. since rate was USD:SGD rate 1.35 and it looked like it was going up to 1.4 because Fed was increasing rates, I kept it in US$ via a 2.5% USD FD. Turns out rates were cut but US$ still increase anyway. The FD has matured and because there was a sale in the stock market, I used up my US$. otherwise at 1.4 I would just change it back to SGD.

 

[BBCWatcher]

Any recommendation? I remember reading some time ago about purchasing bonds and US Treasury but not knowledgeable in this area.

You seem to be stumbling around in a dark closet, so to speak.

Shiny Things asked a good question: what do you plan to do with this money? You've said this is a long-term investment. OK, fine, but is this for your retirement in Singapore that's 20+ years from now -- for example? What's the end goal?

 

[sanji17]

I was in similar situation with a decent pile of USD cash. I have been putting it in CIMB USD Fixed Deposit. USD Fixed Deposit rates has been dropping from last 18months or so(High of 2.95% to 1% now).

Would suggest the following:
1) If you are well-verse with the US Stock markets, could channel your USD there to take advantage of there now.
2) Convert USD back to SGD
USD to SGD is almost at 1.41 this morning. Pretty decent rates. After this crisis, probably wouldn't get this rate in a while. Convert the USD back to SGD and then decide what to do with the SGD.

 

[cscs3]

I was in similar situation with a decent pile of USD cash. I have been putting it in CIMB USD Fixed Deposit. USD Fixed Deposit rates has been dropping from last 18months or so(High of 2.95% to 1% now).

Would suggest the following:
1) If you are well-verse with the US Stock markets, could channel your USD there to take advantage of there now.
2) Convert USD back to SGD
USD to SGD is almost at 1.41 this morning. Pretty decent rates. After this crisis, probably wouldn't get this rate in a while. Convert the USD back to SGD and then decide what to do with the SGD.

The best way is to cash out the US$. Share market is quite unpredictable at this time. Too much risk.

 

[BBCWatcher]

Share market is quite unpredictable at this time. Too much risk.

Not for long-term investing.