Lately I had renewed my Aud term deposit to another 6 months term with an annual interest of 1.625% which is a bit lower than previous. The reason for this is I have just setup a line of credit (overdraft facility) to use the Term deposit as collateral for a OD loan of $800,000 HKD at an interest rate of 5.25%p.a. This loan will give me buying power during the really bad times. I intent to use this money in Stocks index ETF and REIT. When the market collapse hard, I am going to buy large amount of Index ETF especially Hang Seng Index at a bargain price and I intented to hold it for long 1st for Cashflow and 2nd for capital gain when the market resume it bull trend. Also I have just switch my Pension fund account to Cash in order to prepare for the coming crisis.
Article by Macao Millionaire Doctor
