Once Upon A Time There was a female cat and a tortoise in a race.
The cat ran and ran very fast ahead of the slow tortoise.
Then the over confident cat folded her arms and slept.
But day and night the tortoise ploughed on and on. Then the TORTOISE OF INFLATION FINALLY OVERTOOK Bo Cow C cat. The Bo Chow C cat LOST THE RACE TO THE TORTOISE OF INFLATION.
Yes! Chinese Renminbi up 8% Against Ringgit. All imported stuff from CHINA UP 8%. 6% GST Makes it 14% INFLATION!
Inflation tortoise will creep up on sleeping cat FD at only 3.5% Interest per annum!
I am looking at bigger picture to pocket profit above 50% in year 2016. It doesn't matter for me to earn a peanut interest from the FD. I'm willing to pay for the opportunity costs. Wakaka.
With inflation up, BNM will increase interest rate, which will be a double whammy for mortgage loan holders. Mortgage loans make up more than 50% of personal debts.
Isn't the usual remedy for inflation is to raise interest rates? Another reason for raising interest rates is when the RM is threatened. China, Japan and Thailand have reduced interest rates is because of the fear of deflation. Should there is an exodus of foreign funds, Malaysia will have no choice but to protect the RM and you'll see the interest rates shooting sky high - no matter who runs the government of the day. If that happens, we may have to experience capital controls again.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
freonsf
645 posts
Posted by freonsf > 2014-12-29 14:22 | Report Abuse
disaster of stock coming?