Let's just do it!

It's a long time , everyone.It sure comes home with a hit now.It's still on our funny economy.We spotted it right with a bull.It's now down, down, down,and it's still carrying the momentum though at differring rate around the world. Some may beg to differ but it's no doubt our klsc could still hold on to 850 points. Let's wait to see how long it can possibly hold on not below 700 points.It's a fun game.A lot might wonder how could we fetch up good bargain right away. I'd say go ahead and make sure your do your homework.Perhaps i could throw some good advice but please view them with cautiuos and inquisitive mind.

It's always easier to believe rumours that any such XYZ stocks do promise certain amount of quick bucks , not to mention that such spread of 'fortune-telling' could possibly be from the mouth of the owner of these stocks , there are some from the so-called analysts who are paid professional 'fortune tellers' spreading like wild fire in the forest. Trust me it's much better to sense it with your own gut feeling followed by some basics of the game.

Personally i do perform fundamental analysis on certain stocks which gives me a buffer or a factor of safety if what are told by technical analysis going the opposite direction. Fundamental analysis does tell us the degree of how solid the stock is but it's not always recognised by the institutiona playersl or hedge fund.That is why the technical analysis play the part. So , please do buck up yourself on the two's if you are serious to dive into the market

Inflation

Fuel price hike warning calls! Though it has been promised by the government that no petrol price increases for this year ,alas it went up with no mercy to rm 2.70 per litre-broke the Malaysian Guiness's Record for the biggest leap in rate ever.It has in fact affected every part and parcel of its citizen, more true to those struggling in any attempt to make ends meet.What can the normal citizen do but to accept what's been decided.Rm625 rebate could sustain us in no more than few trips to Kedah from KL.But that was played to temporarily silent the critics and furious 'Mr./Mrs.Malaysian Boleh'-just counting down how much longer we 'boleh'in the face of the alleged and proved inflation clouding every Malaysian.Start tighten up the taps or source for more taps now all fellow Malaysians. We are indeed in recession now or much better be termed stagflation-price increases for most items but are rarely in demand due to less confidence or reduced purchasing power. Consequently, retailers are forced to either reduce prices and reluctantly accept deflated profit or to reduce production. The latter tends to worsen unemplyment rate in the country. Squeese your every cent and dollar to its worth!

Learn from the basics, from RS's Duplicate

Stockalism

It's been for years since last traded in Share market .But only since last year that i really seriously dipped my head into studying Stock and its research on hundreds of stocks in the current market be them blue chips or penny stocks.Books by local or foreign writers became my recent favourites.However i'm not going to bla-bla on what is stock or any of the fundamental or technical analysis on when to buy and sell shares, which counters to pay attention to and to avoid, what are the fair prices and its intrinsic values and all the macroeconomic factors that so-so-claimed could skyrocket or plunge the share prices.

My concern now is whether share market is really meant for all retailers or so-called 'small fish' (small cap) who have lost hundreds of thousands bucks in the 'shark' (share) market during the 1997 financial crisis and some didn't even make it back through the boom time.All the stock investors gurus are so generous in their books to show you how to make millions in the stock market and some even put up media advertisement to woo apprentise and charge up to rm10k per student-now they discounted up to affordable amounts as competition heated up recently to attract you and me to become millionaires.

Come on-lah. Do you think these so-called gurus wouldn't be sitting down there in front of thier laptop screen busying getting millions and millions first before they could even spare thier golden times to coach you and me to be richer than themselves. Same goes to the book writers whom i might naively believe are willing to share thier 'secret-recipe' to the public. I would challenge that not even 99.9% of all human kind would do that unless they are the 0.1% which according to the AAA psychiatrists might be mentally imbalanced or they may be dead-man whom thier secret-recipe in the tomb were discovered by Indiana Jones or yes they are really kind monk who see money as mere incense papers presented to the souls during Chinese 'Chin Meng' day.
Please do not take me as paronoid. If there was not the case, then a lot of business today would go bust due to fierce competition.I guess the ' KF* ' would be the first food chain restaurants conglomerate to head south if they are so generous to let us know its recipe.

To be bluntly straight to the point, those joker-gurus are just out there to hunt for the first millions by selling you that technical knowledge which even they themselve could not guarantee the sure-win even after so many years in that battlefield cum with all the best knowledge they ever manage to gather over the years from the best stock masters

Fuel Price shot up !

5,June .Yesterday's 5.00pm announcement by the Cabinet that petrol prices increase by 75 cents should be a momentous ' add salt to the wound' move by the government. KLSE composite dropped 12.96% til 4.30pm of its moving up again reduced total drop to 4.45%. I guess it has been intentionally supported to offset the news after "5 pm". What an obvious maneuver ! However, today big slide in Composite came in no surprise to the expectation. Be braced for the spiralling effect of the increase to the whole country inflation rate in tandem with slowdown in the Western countries.

The credit crunch

With today economic headline again we linger on US Fed Reserve helmsman again after several times slashing of interest rate , sticking out his neck that his belief on the broader economy's recovery depends on the housing sector. As such i announced that much of our attention be drawn to the belief that house-buyers defaulters are the crisis locomotive in the made-believed downturn.Have we ever pondered further the true cause to the root of the crisis that has literally been fogging our financial systems for almost a century ?


I wouldn't have thought much before until my mind ticked on the basics of the algebra or any simple equation that even a primary kid could appreciate. For the house buyers who tend to obtain bank loan for the purchase would have their loan secured via a mortgage whose value is greater than the loan exposure.The periodic loan repayments are receivables or book debts and thus treated as assets in the Lender's accounts.Consider now the Money-lenders now want their obscene profits fast by adopting what a normal goods traders would do. This is what is happening now in the system that the money-lenders try to package them as one product which can be sold to anyone including the other money-lenders for quick bucks. Whoever money-lenders receiving the batons may repackage them for resale for another turn of profit.Now, subprime mortgage crisis broke out when the original house buyers defaulted the repayments.Ladies and gentlement, we 're talking of trillion of US dollars which has easily surpassed any GDP, if ever, generated by any super-powered nations.

Financial crisis!

Financial crisis? Do we really have one now , globally ? We could have different views whether we do feel it or just by hear-say. RS hopes the this blog could create a platform for everyone to have a say of their views.

Opening up any local mainstream newspaper today we could find some fractions ,though not full, of what's happening in the US economy particularly and the world in general- firstly the subprime mortgage crisis , the oil and food crisis and finally the financial systems crisis.In fact when i start asking myself what those really mean to me and how they could practically affect my life, perhaps it's just matter of time before things start creating ripples.

Thanks to some local enthusiasts who really go behind the scene to unveil what is actually happening to the global economy, Malaysia in particular.If what have been claimed to be imminent are not mere folklore, are we all well-prepared for ? how should we get all armed for our family?