thank you!

Hi everyone,

Many people wanted to join last night but the Zoom room was maxed out at 300 participants! 🙏 I really appreciate the overwhelming support. So in addition to the replay, I’ve crafted a succinct summary below.

🔑 Main Points Covered

1. Fed Rate Cut & Market Reaction

The Federal Reserve cut interest rates by 25 basis points, as widely expected

But here’s what changed
• They signalled a more aggressive cutting path for the rest of the year
• Two more cuts are now projected — possibly October and December

What did the market do?
• There was a short-lived sell-the-news reaction right after the Fed announcement
• But prices quickly rebounded as traders recalibrated expectations
• Powell’s tone was slightly more cautious than markets wanted, which reduced the chance of rapid easing

Big takeaway: Crowded trades unwind fast
• The “short dollar, long everything else” setup saw a shakeout
• Investors pulled back, then re-entered with more selectivity

2. Mortgages & Property Financing

• Ethan from Unbeatable Mortgage shared updates on SORA and bank rates in Singapore

• Rates have been whipsawing so reviewing your mortgage now can lead to thousands saved annually

• Ethan and I debated about Fixed vs Floating rates.

• I prefer fixed because it gives a peace of mind while Ethan supports floating as he is expecting the rates to drop further.

• No right or wrong here! It depends on your situation.

3. Portfolio Positioning in Today’s Market

This isn’t just about the Fed
We’re starting to see the return of asset inflation
• Gold is outperforming the S&P 500
• Central banks are buying what is scarce
• The 80/20 rule is in full force — most gains will come from a few standout names

I am currently at about 22% CASH, waiting to deploy more!

💡 The 2 Trade Ideas I Shared

1. Sell Put on a Stock You Want to Own (E.g. Gold ETF - IAU)
• Pick a high conviction stock you'd love to own if it gets cheaper
• Sell a put around a level of support or at a price you are happy to pay
• This strategy earns premium upfront and sets you up to buy the stock at a discount
• Ideal for sideways or gently bullish markets
• Manage by taking profits early or rolling if needed

2. Wait for Pullback to Enter LEAP Call (E.g. Alibaba - BABA)
• Identify your top growth idea and wait for a better entry
• Use a long-dated call option (min. 12 months DTE) once it pulls back
• Choose strikes deeper in the money for better reward-risk
• LEAPs give you long exposure without committing full capital upfront
• Use scaling to build position after confirmation

These ideas were demonstrated during the session with examples. Watch the replay for the full walkthrough.

👉 For all the details, here is full replay:
https://investwithpete.teachable.com/courses/614054/lectures/63179387

Thank you again for being part of the IWP community

Let’s stay focused on clarity, conviction and strong execution

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.