im moving to Tbills

Nigel.Machado · 1 im moving to Tbills Wed Jun 08, 2011 4:52 pm

Nigel.Machado

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i cashed out my investments about 10 days back and now im moving to Tbills expecting to enter the market back in december.

note: this is my personal opinion do your homework before making any decision.

milanka · 2 Re: im moving to Tbills Wed Jun 08, 2011 5:21 pm

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Nigel.Machado wrote:i cashed out my investments about 10 days back and now im moving to Tbills expecting to enter the market back in december.

note: this is my personal opinion do your homework before making any decision.

But TB rates are lower than bank FD interest rates. Then why invest in TB's ?

Last edited by milanka on Wed Jun 08, 2011 5:53 pm; edited 1 time in total

mono · 3 Re: im moving to Tbills Wed Jun 08, 2011 5:51 pm

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Wait. You're looking at 4 months here. What are the yields for such short term T-bills. can you even get 3% returns

milanka · 4 Treasury bill Auction Wed Jun 08, 2011 5:57 pm

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The Central Bank’s weekly Treasury bill auction saw the 3 month and the 6 month rates going up by just 01 basis point with each respectively reaching 7.11% and 7.20%.

01 year rate remained same as the last week’s rate of 7.35% at today’s auction.

The auction has received Rs. 21 billion worth of bids while the Bank has only accepted Rs. 11.56 billion to retire maturing treasury bills of Rs. 10 billion.

http://www.news360.lk/markets/treasury-bill-auction-2

mono · 5 Re: im moving to Tbills Wed Jun 08, 2011 6:00 pm

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milanka wrote:The Central Bank’s weekly Treasury bill auction saw the 3 month and the 6 month rates going up by just 01 basis point with each respectively reaching 7.11% and 7.20%.

01 year rate remained same as the last week’s rate of 7.35% at today’s auction.

The auction has received Rs. 21 billion worth of bids while the Bank has only accepted Rs. 11.56 billion to retire maturing treasury bills of Rs. 10 billion.

http://www.news360.lk/markets/treasury-bill-auction-2

so 3.6% returns.

I'll take my chances with the CSE

2011_NewComer · 6 Re: im moving to Tbills Wed Jun 08, 2011 6:25 pm

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Nigel.Machado wrote:i cashed out my investments about 10 days back and now im moving to Tbills expecting to enter the market back in december.

note: this is my personal opinion do your homework before making any decision.

I was also thinking like that recently and wondering what to do.
As I am not doing day trading and much short term trading (as a mid term/long term investor) thought it would be better to put money in FDS/TBs and and start back in around december...
I started around Feb/March - bought fundamental shares likes COMB, DFCC, SAMP, NTB, RICH, etc...but at the moment most of them are either at the same level I bought or even lesser. Sad

As there can be down trends in September and december (remaining credit clearance) I feel that I'll be able to collect them at the same price around december (That's my personal opinion, and have doubts on that)

Thinking what do... Rolling Eyes

Nigel.Machado · 7 Re: im moving to Tbills Wed Jun 08, 2011 6:50 pm

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since im in a 100% cash position backed by 40% gains(specially from brwn run from 250 levels to 400) in the 1st 6 months in 2010, im not that concerned about returns now.

factors to select tbills is liquidity and safety.

i don't expect market to do wonders in the coming monts due to credit issues, cbsl decision to combs exposure to cse and new regulations on insuarence funds.

even if the return from tbills is 3% at the end of the year i'll be having a 44% return.

i expect to enter back in december.

note: this is my personal opinion, not a buy/sell or hold decision. do your homework before making any decision

wikum100 · 8 Re: im moving to Tbills Thu Jun 09, 2011 12:15 am

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2011_NewComer wrote:

Nigel.Machado wrote:i cashed out my investments about 10 days back and now im moving to Tbills expecting to enter the market back in december.

note: this is my personal opinion do your homework before making any decision.

I was also thinking like that recently and wondering what to do.
As I am not doing day trading and much short term trading (as a mid term/long term investor) thought it would be better to put money in FDS/TBs and and start back in around december...
I started around Feb/March - bought fundamental shares likes COMB, DFCC, SAMP, NTB, RICH, etc...but at the moment most of them are either at the same level I bought or even lesser.
As there can be down trends in September and december (remaining credit clearance) I feel that I'll be able to collect them at the same price around december (That's my personal opinion, and have doubts on that)

Thinking what do...

hm hm me too Rolling Eyes

Tiger · 9 Re: im moving to Tbills Thu Jun 09, 2011 12:59 am

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Unless you have several billions to invest, bank deposits would give you couple of percentage points higher return than Tbills at virtually near zero risk level.

duke · 10 Re: im moving to Tbills Thu Jun 09, 2011 8:37 am

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These days it's much important to save your initial investment. Unless you have considerable time to monitor and analyse the market and probably invest in penny stocks.
One thing to note is that good but sometimes overvalued stocks are hitting bottoms, going up a bit and again hitting a new bottom. Not good for the medium or long term. But for short term penny stocks and some illiquid stocks are going up massively.
So as some people say don't expect a big market crash but we're experiencing a market crash that spans a while. I mean the stock price won't go from 100 to 70 in one day but it'll happen over weeks, months and quarters.

Rajitha · 11 Re: im moving to Tbills Thu Jun 09, 2011 8:45 am

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I just wish I can get that cash for even 5% loan for that period from you!

Fresher · 12 Re: im moving to Tbills Thu Jun 09, 2011 9:01 am

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Rajitha wrote:I just wish I can get that cash for even 5% loan for that period from you!

great idea!

Meta Trader · 13 Re: im moving to Tbills Fri Jun 10, 2011 12:36 am

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Nigel.Machado wrote:i cashed out my investments about 10 days back and now im moving to Tbills expecting to enter the market back in december.

note: this is my personal opinion do your homework before making any decision.

If your heart is strong go for Greek Two-year bond notes . 24% !!! Don't forget that another rate hike is on the way in coming months.

Nigel.Machado · 14 Re: im moving to Tbills Tue Jun 14, 2011 9:49 pm

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i made the correct decision i did exit when ASI was 7450.

when i look at the market now it looks like a "SALE"

but still i'm happy to maintain my 100% cash position expecting the market to drop further.

anyway i'm getting into 1 month Tbills tomorrow.

note: this is not a buy/hold/sell opinion. do your homework before making any decision.

Nigel.Machado · 15 Re: im moving to Tbills Mon Jul 04, 2011 8:43 pm

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so i was correct......

i cashed out at the correct time.............

ASI is down from 7450 to 6816

but still, i prefer holding my cash position expecting the index to fall further.

note: this is not a buy/hold/sell opinion. do your homework before making any decision.

investor1984 · 16 Re: im moving to Tbills Mon Jul 04, 2011 10:16 pm

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Nigel.Machado wrote:i made the correct decision i did exit when ASI was 7450.

when i look at the market now it looks like a "SALE"

but still i'm happy to maintain my 100% cash position expecting the market to drop further.

anyway i'm getting into 1 month Tbills tomorrow.

note: this is not a buy/hold/sell opinion. do your homework before making any decision.

1 month bill???? i thought minimum tenor for a bill is 3 month. To buy a bill u must be a big investor ( BoC ask for a minimum 5 million to place a bid at the auction) , by the way why didnt you go for a Fd with a commercial bank or a reputed finance company???? By the way isnt it complicated if you want to discount ur bill if u r in a great need of cash??? A seasoned investor like you who identified the market inadvance should have invested in GOLD, i am soooo suprised that you didnt identified that option...

player · 17 Re: im moving to Tbills Tue Jul 05, 2011 9:11 am

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move to PAWNING business,its so profitable.........
Peoples bank interest-1.17%,per year-14%
Swarnamahal/private institutions-2.5%,per year-30%

what you think Question