Part 7/10:
With the US Fed hinting at possible rate cuts, the yields on Singapore T-bills are expected to decline further. This trend suggests that T-bills may become increasingly unattractive for yield-seeking investors. Although they retain utility as short-term parking instruments, their long-term appeal diminishes in an environment of falling interest rates.
Short-Term Utility vs. Long-Term Wealth Building
While T-bills remain useful for short-term goals such as upcoming purchases or emergencies, they are less suited for long-term wealth accumulation. Relying solely on short-term instruments can result in returns that fail to keep pace with inflation, eroding future purchasing power.