Apr 18, 2009

Worst is Over? how about tomorrow

There is suprise move for "V" shape rebound from Dow since early March... which is continous for 5 week. Question now is , does this rally can be long or what will will happen tomorrow?

Some Developing markets, like India index break records of 32% in just past a month. I believe some of the reader here who manage to capture this rebound sure have handsome return. No matter you buy Bursa stocks or index funds. Almost all the central bank now fighting in "printing money game".What is implication on it? Money flow everywhere, This not only happen in US, even China initially a bit reluctant to joining the game, now also fighting on it.

When Fund over flow, some will flow to market, I.e any market; Commodities or Equity. This can be see in many commodities index also have similar perform as compare equity. Now they have worry of next commodities boom and finally will lead by another round of inflation boom.

How serious on it? No body know. If you go hawker centre orany hypermarket . you will notice food prices not reduce as report said low inflation rates, ! pack of 10 kg rice still cost us RM50 compare last time RM30++. Jusy imagine another round of inflation come, What is the implication of the rice price? 10 kg rice may go to rm 100 per packs. my god~ does this will happen? Yes. If projection is do it correctly.

What we need to do now? Putting money in bank or pillow? well, low interest rates in bank definetely not enough for cover inflation rates, wealth will gone! Equity and other tools in investment. I may said "yes", but violative and timing of enter and leaving market became important compare old day.

Now is good time to enter or profit taking. My prediction is, market will still rebound, for those not yet enter into game. I will said you are losses the golden chance to cape high return. Entering now will facing higher risks then before. I may said for those not yet enter, still can be enter by stages, may be with lower % of commitmment. for those entering i may said, hold for while, of course some adjustment may be coming soon. The game is started not yet end by tomorrow.

Apr 4, 2009

Investment in Bursa and oversea market ? Our EPF accounts.

There are many argument that where and who should be decision maker of our EPF money?
Currently they are some option and restriction for our money in EPF to be invested.

1. Only member who reach minimum balance of RM 50 k to be eligible for investment scheme outside normal dividend received. The rules has change to encourage more younger to expose their investment habit. ( for example age 20. then u minimum balance..should be lower amout)

2. only stages by stages. investment over the period of time for investment, and not lump sum investment. 20% of your excess min balance is allow to taken out. and next withraw is another 3 month from the approved for your 1st withrawal.

3 Limited fund to be selected, Only Malaysia fund are eligible in the scheme, those fund with oversea content are not allow to be invest. Purpose is to avoid country risk outside malaysia.

4. Only Unit trust is allowable to invest and not direct to Bursa or equity market. The purpose is same as mention in point 3, risks

In my view, there are excellent moves for flexible minimum balance to encourage youngest in investment. But otherlimitation such as not allow invest in oversea fund or direct to stock counter need to be re consider or re planning.

Globalization will let many Malaysia company with oversea exposure with greater return and other global risk. meaning invest in only local funds will not help us to reduce our risk in globalized. Reversely, may be restrict for Malaysian to get better return with moderate risk. If you compare risk and return for unit trusts market. you will find not necessary is local fund will bring your lower risk or better return. I will find some is worst performance compare to local fund. I will suggest open portion of the investment to oversea fund to spread the country risk.

Can we consider using our EPf money to direct invest in certain : blue chip " counters in Bursa Malaysia. Reports show over the time, certain Blue chip counter will bring better return even though violative markets. Just for example. if you buying a units of "Genting " share 20 year ago. Compare with other Unit trust or Epf dividend. Definetely that will given us better return.

Of course I may said, the EPF board is consider lack of market knowledge of malaysian and low finance education...... but over the year, I find those restriction should be open stages by stages. In view of the size of EPF now, there are better for EPF to let unit holder to learn how malaysian can be learn and manage our EPF money.

There are report show that many malaysian are utilised their EPF after 3 year of retirement. Does this show malaysian need to be more educated in finance or money planning. EPF will only help us manage money up to 55 year old. Does mean more open for investment will bring more risks to statesholder? We should learn lesson from US or some reason for burning their retirement fund in financial crisis. but does regurlation or control will let us have more knowledge?

Sep 19, 2008

Free Raja Petra Kamaruddin, Teresa Kok and Others Held Under the Internal Security Act Petition

Free Raja Petra Kamaruddin, Teresa Kok and Others Held Under the Internal Security Act Petition

I’ve signed the petition.

If you haven’t please click the image below, read the petition and sign it, please, and then get all your family and friends to do the same.