Although foreign funds keep on selling, our KLSE is still very strong, very resilient ..... no panic selling ..... local funds and retailers ramp to full strength to support .......
The situation now is still far from that of Mar 2020, by then, people just threw at whatever price, very shocking ...... now, still no panic selling (force selling?), however, the selling still not ended ..... no sure whether a more shocking scenario is brewing .......
Agreed with u Tobby. How true is the inflations rate that they told keep increasing every month. They just created havoz to the stock market to neutralised and reset it back so that the big player can buy and gain control back at much lower price. This is just a sentiment war. The recession will happen went the dollar is so strong and all other countries will suffer economically. And their objectives is almost achieved anytime soon..
That is not the case. They will keep increasing the int rate until the inflation rate is reduce gradually. Bcoz, with int rate hike, it will reduce the consumer purchasing power and and balance back the market supply and demand. With high inflation rate, theoritically there is over demand than supplied in the market.
Posted by ahbah > 3 hours ago | Report Abuse To fight inflation, interest rate must be higher than inflation rate ? ~~~~~~~~~~~~~~~~~~~~~ This derived from the concept of real interest rate ........
A “real interest rate” is an interest rate that has been adjusted for inflation. To calculate a real interest rate, you subtract the inflation rate from the nominal interest rate. In mathematical terms we would phrase it this way: The real interest rate equals the nominal interest rate minus the inflation rate.
Real interest rate = Nominal interest rate - Inflation rate
Real interest rate affect value of money over time. Value of money becomes higher if real interest rate is +ve, value of money is diminishing over time if real interest rate is -ve ........ this affects the willingness of people to keep thier money or spend it ..........
The treasury arm of the government issues bonds to borrow money. Another arm of the government, The Central Bank, buys it and release the money to the government. This is quantity easing (QE). The value of the existing money should drop unless the nation's money is the reserve currency of trade (USD). In a way, it is money dropping from the sky.
Posted by ahbah > 1 day ago | Report Abuse Printing new money got affect value of existing money ? Where the new money come from ? from empty space in the sky ?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I think you knew the answer :-) They are suffering too, by printing too much money from the air .......
Although the CPI downed from 8.5% to 8.3%, the core CPI (exclusion of food and fuel) rose from 5.9% to 6.3% (mainly contributed by rents, cars, medical care services) which is more stubborn ...... some people think the Fed would stop the rate increment soon, like what happened in 2020, but this time, it won't be so easy ...... :-)
Core inflation in us jump more thn expected.The main thing.the other slightly lower.so.2-3 percent drop started.not include bad news from reporting season... 13/10/23 8.52pm
The selling will probably end when Fed is forced to do QE again. What happened in UK bond market could potentially happen in US as foreign governments holding huge chunks of T Bills are forced to sell in order to protect their local currencies.
Definition: Intrinsic value is the Present value of the investment of all the expected cash flow over the lifetime discounted at the appropriate discount rate.
Intrinsic value = (CF1/ (1+d)^1) + (CF2/(1+d)^2) + ----- +(CFn/(1+d)^n)
Where: CF = Cash Flow in the Period d = Discount rate n = The period number This Intrinsic value is actually a Discounted Cash Flow (DCF) Example of intrinsic value of INSAS is then the Sum of DCF expected cash flow from varies business streams. For INSAS assets rich case, it is my opinion that the liquid assets minus total liabilities should be added to this intrinsic value.
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....
firehawk
4,783 posts
Posted by firehawk > 2022-09-26 16:32 | Report Abuse
Although foreign funds keep on selling, our KLSE is still very strong, very resilient ..... no panic selling ..... local funds and retailers ramp to full strength to support .......