Moving out of the CB: A New Light

The CB has officially ended, but it doesn’t feel like there is much difference. All my family is still at home, and my kid only goes back to childcare on Monday. We did finally spend some time with his grandmother, which was a relief.

I will miss having my kid around the whole day when he goes back to school. But he is picking up too many bad habits like excessive screen-time, and skipping naps and brushing teeth. I feel quite guilty that he is watching so much TV, but there isn’t anything else to do. All the books have been read, all the games have been played weeks ago.

It sucks too that all activities for kids are closed. No zoo, no playgrounds, nothing. It has been tough for all of us to be being stuck at home. There is also no joy in seeing so many people, including the elderly and mentally ill, being charged with breaching the law.

On a certain level, I can understand the caution. We have a big elderly population who are vulnerable to the disease, including my own mother. We are a small country where people are living closely together. It will be disastrous if it spreads here. But its still terrible to go through this experience, and I hope this is the end of it.

It feels like there is light ahead. We have survived, and that is something to be thankful for. My wife and I are discussing year-end holiday plans, and it will feel sweeter than ever.

Money-wise, it has been surprisingly good. Seems governments had a big disproportional response to the initial crashes, and it wasn’t as bad as it seemed. They flooded the system with a lot of cheap money, and it could be the start of another 10-year bull market cycle.

I didn’t take full advantage of the crisis, mostly thanks to inexperience and a short window of opportunity. My relationship managers (RM) also didn’t give the best advice. On the brokerage side, my RM didn’t offer any strategies to meet margin call other than cash, and I learnt myself that I can pledge shares instead of cash. This freed up a ton of money to actually buy new investments. On my preferred banking end, I was frustrated that my credit line took 6 weeks to be approved and I missed out on the rally. I was also advised to wait rather than buy. Rather painful learning experiences. A good lesson is to always be educated myself, and don’t rely on RMs for advice. Credit lines should also be prepared in advance rather than during a crisis.

Looking forward to the rest of the year. Take care all.

5 comments

  1. Yes, painful lessons for me as well. RMs and friends are not accountable for our money. So, for money management, I don’t outsource my thinking to others anymore.

    1. Yes, I totally agree. RMs don’t make money when you make money. They make money when you buy, regardless of how the investment actually performs. Glad you are one of the smart ones

  2. Just to add on, use of RM has a hidden cost and trading costs too all add up to bring down returns in the long run. One of the reasons why passive wins over active investing over long time horizon. I personally believe investing is meant to be boring and lazy – the least you do anything the better returns.

    1. Yah I can agree with that and use ETFs too. I invest some funds through my RMs because of the leveraging they provide. They are willing to lend me hundreds of thousands at relatively low interest rates. Otherwise, there really isn’t much reason.

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