Markets Shaky, Yields Dropping: What Should You Invest In Now? Beansprout Podcast EP2

Stocks, Bonds

By Gerald Wong, CFA • 21 May 2025

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In this episode, we explore practical strategies for parking cash and generating income in today's market with falling interest rates and volatility.

Where to park your cash Beansprout podcast episode 2

In this article

What happened?

With T-bill yields on the decline and uncertainty still looming over global markets, many investors are asking the same question: Where should I park my cash right now?

In Episode 2 of the Beansprout Podcast, the team revisits their own portfolios and shares practical strategies to manage liquidity, build passive income, and make smarter short-term decisions in today’s environment.

This episode covers the shifting macro landscape post-tariff announcements, the fall in bond yields, where to park your cash savings, and whether investing in REITs, dividend stocks, or even the US market still makes sense.

Here are the key takeaways from our conversation.

Transcript of Markets Shaky, Yields Dropping: What Should You Invest In Now?

Summary of key points

Markets have stabilised following earlier volatility driven by US tariff announcements, with Singapore and US equities rebounding and bond yields declining.
T-bill yields have fallen, prompting investors to explore alternatives like fixed deposits, high-yield savings accounts, Singapore Savings Bonds, and cash management accounts.
Emergency vs short-term savings should be separated to determine where to allocate cash for liquidity or yield.
Cash management accounts offer higher yields but come with capital risk and redemption delays.
Income-generating investments like bond ETFs/funds, REITs, and dividend stocks are gaining interest as alternatives to cash.
Singapore REITs remain popular due to familiarity and mandated dividend payouts but face pressure from rising interest rates and weak fundamentals in some sectors.
Singapore bank stocks offer strong dividend potential but are cyclical and volatile.
Geographic diversification (US, China, Europe) is crucial, but exposure should match individual risk appetite and investment horizon.
Getting started is key—small investments help build confidence and allow investors to learn by doing.

00:46 – Market outlook post-tariffs

Markets have recovered from initial panic.
S&P 500 and Singapore’s STI are near highs.
Bond yields have fallen as confidence returns.
With falling yields, investors are re-evaluating where to park cash for safety and returns.

04:16 – Cash options for emergency and short-term goals

High-Yield Savings Accounts: Up to ~3% p.a., with criteria like credit card spending or salary credit.
Fixed Deposits: SGD options yield ~2.4% p.a over 6 months; USD FDs offer higher rates but have FX risk.
Singapore Savings Bonds (SSBs): Government-backed, 10-year savings product currently yielding ~2.56% p.a.

06:37 – Cash management accounts

Offer potential for higher yield than savings accounts.
Not SDIC-insured and not capital-guaranteed.
Liquidity is good, but redemptions typically take 1–2 days

Related article: Best money market funds in Singapore

08:57 – How to decide where to park cash

Determine your timeline: emergency vs short-term goals (e.g. renovations, weddings).
Planning tools like spreadsheets or notes can help allocate funds accordingly.
Many account conditions (e.g. $500 card spend, salary credit) are easy to meet for higher rates.

13:08 – Investing for income

Consider bond ETFs/funds, REITs, and dividend-paying stocks.
Bond ETFs (e.g. ABF Singapore Bond ETF) are lower-risk with regular income.
Check bond exposure (govt vs corporate) and average maturity for risk management.

18:06 – Understanding REITs

Popular in Singapore for income and familiarity (e.g. malls like 313@Somerset).
Mandated to pay out 90% of net property income.
Performance has been mixed recently due to higher rates, WFH trends, and FX pressure on overseas assets.
Consider REIT ETFs for diversification if selecting individual REITs is difficult.

Related article: Guide to Singapore REITs

22:03 – Dividend-paying Singapore stocks

Singapore banks (DBS, UOB, OCBC) have paid strong dividends, supported by rising interest rates.
Banks are cyclical and subject to short-term volatility

Related article: Best Singapore high dividend stocks

26:06 – Global market exposure

US tech stocks: consider if you’re too overexposed to US equities and whether you can stomach the volatility
Europe is attracting attention as investors rotate out of US equities.
Diversification across geographies and asset classes can be considered, based on individual risk profiles.

30:39 – Personal strategy adjustments

Hosts are revisiting their portfolios: reducing US-heavy exposure and considering more income-generating options like REITs and bond funds.

34:56 – Tips for beginners

Start small to learn through experience.
ETFs and mutual funds provide diversification with less effort.
Starting to invest, even small amounts, enhances awareness and understanding of the market.

38:44 – Final takeaways

Many income-generating opportunities remain, even with falling rates.
Know what you are investing in and why.
Start early, learn by doing, and build confidence gradually.

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