“Patience is a product of confidence and trust.” — Peter Kaufman The only ally for long term investment is time. For an investment to grow over time, investors require patience. And in order to be patient, investors need to have confidence and trust the investment will grow over the long term. Malaysia Equity Market In […]
Category: Economics
2022: Inflation, Rising Interest Rate, and The Shift from Growth to Value
2022 is simply a terrible year for investors. Most investments return for the year are in negative territory and the culprit is high inflation. We all know what high inflation means to our spending power and it is a cause of concern for both Governments and Central Banks (CB). One of the tools used by […]
Risk: Foreign Currency Effects on Foreign Investments Return
Below is my StashAway investment return on Friday, 23rd July 2021 denominated in US Dollars (USD). Total Investments (USD): $218.20Total Returns (USD) : -$2.61Current Value (USD) : $215.59 As shown above, I’m currently making a loss of -$2.61 🙁 but what about my returns denominated in Malaysian Ringgit (MYR)? Total Investments (MYR): RM901.00Total […]
When Math and Emotion Collide
In my previous Discount Rate is not Markup Rate post, I explained how the mark-up rate is always higher than the discount rate. This point is crucial when it comes to investing. Say a stock price has dropped in value from RM10 to RM5. If you were to purchase the stock at RM5, it simply […]
Moratorium: Everything I’m Annoyed About It
Good and bad is relative. Since the future is unknown, no one knows how this moratorium will affect us. If I lose my income in these coming months, then this moratorium can be a blessing. However, if I manage to sustain my income, then I may have the “opportunity” to save money but will there […]
My Thoughts During House Arrest
It’s Movement Control Order (MCO) but it certainly feels like a house arrest, especially during the weekend. The furthest I can travel in a day is from my room to the kitchen. Most of my time is spent in my room, either facing the walls or my room fan. The longer I stare at them, […]
Stockdale Paradox: Realist vs Optimist vs Pessimist
The law of karma is the law of cause and effect. Effect is determined by the nature of the cause. So the result of action is determined by the nature of action. Action is only an extension to the thought processes of the mind. Therefore action is determined by the nature of your thought. The […]
Gold Price Rises When There Is Blood In The Streets
So, the new year or the new decade started with a bang! On January 3rd, 2020, U.S. conducted a drone strike near Baghdad International Airport killing Qasem Soleimani, commander of Iranian Revolutionary Guards’ Quds Forces. Six days after, the tension between the US and Iran continues to rise, threatening a full-blown war between both nations. […]
Interest Rate: It Is In Your Interest To Know It
Not sure about you guys, but when I was growing up during my schooling days, I hardly hear my parents discussing the stock market. Occasionally they do speak about the property market but most of the time, it was either a conversation on fixed deposit (FD) or Employees Provident Fund (EPF). Now in my mid-30s, […]
Enough vs Growth: View of a “Pemalas”
I love to ask these questions to my peers. “Between yearly income of RM250 thousand and RM 100 thousand, which one would you prefer?” Almost everyone including myself will answer RM250 thousand. The next question, “What if the stress level of RM250 thousand income is 100 times greater compared to RM100 thousand? Would you still […]