With the collapse of Silicon Valley Bank and the equally fast Fed backstop of uninsured investors, a little bit of volatility has been introduced into the market, but the operative words are 'a little bit'. By and large, investors are not panicking even if there appears to be an orderly exit of some counters. Then we have Credit Suisse, whom everyone knows is too big to fail, but investors realise that they could lose their money if the govt takes over the bank, so we are seeing another orderly exit.
The end result of all this excitement is that S&P500 is still hovering around 3900-4000 today even though a number of bank shares got hit.
This gave me an opportunity this week to buy more VWRD under $100 which I consider to be a good price, and I also added some LSPU. On the Singapore front, I find Capitaland Ascott Trust too tempting to pass up at $1.00 so I bought some, and also Comfort Delgro at $1.18
I expect the S&P500 to be rangebound for a few more months. However, I am optimistic that the collapse of banks favoured by Crypto firms will have a deflationary effect without causing contagion to the major banks. Hopefully Fed will only need to hike rates at most 2 more times and call it a day. I briefly looked at whether an S&P sectoral ETF like XLF was worth a punt but the price is still not that cheap - needs to fall at least 8% more, otherwise better to stick with S&P500.
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