Hi guys all Economist so called leaders World Bank, IMF, US Treasury and many more have indicated coming of World Recession, I personally foresee
this happening and I want take all precaution to avoid any financial crisis , whats your say.................

After a Financial Crisis, Things to note when investing

Please spend 30 seconds to look at the below picture




After a Financial Crisis, Things to note when investing
Please spend 30 seconds to look at the below picture


If this is your first time looking at the picture and after 30 seconds you still didn't realize that there is a shark at the back, you probably need to train your adversity quotient.
It is the same when doing investment, you always get attracted to those 'big' returns. Be careful of the hidden adversity that might occur.








This post has been edited by Fabio1: Sep 14 2011, 05:21 PM


Attached thumbnail(s)

So how much capital had you prepared?
100k?
500k?

Of course there is a coming recession. There always is one coming. The thing is as sure as death and taxes. The question is how far away it is.

Well the 1 not prepared will suffer lets learn from our past experience.
If it happen what will be the chain reaction ,remember 1997 crisis

The Domino effect. Tada. By the way TS, how are you going to prepare for the upcoming recession?

Shouldn't it be to reduce liabilities? Decrease luxuries? Boot out the corrupt politicians?

i recntly disposed some props and waiting for good time

If I were you I will cash out from market ,share,mutual fund,cut down your loans as much you can , pay of your housing loan via EPF and etc

does saving in bank (in malaysia) safe?

just bought a property earlier this year..cant exit now. damn

Why can't exit?

Cos mortgage got a lock-in period, no?

Maybe under-Con kua

Still can sell immediately also de..
Under-Con also can sell before finish con..

Later when finished con, you got con because market down.

I c i c... oops i was under the impression that it cant be sold within the lock in period.

Fabio1,

So, how long can you SURVIVE without any income??

Dreamer

i will sell my every unnecessary assets, and take margin loan as much as i can.. and slap all cashs into share market (when it went to the bottom).. living poverty for the next 3years.. haha i just wish i had more guts to do so.. high risk high return..

This post has been edited by alwjmonster: Sep 7 2011, 02:42 AM

Hmm i started to plant vege n rear fish for own makan in my parents' lil garden where the hse fully paid de. Worse case scenario no job, no hse still got food n shelter

Folks,

I have enough emergency fund to last 2 years. With dividend, I can last another 2 to 3 more years. This is all without affecting my lifestyle or selling anything.

Dreamer

i have been preparing for it since 2002..........bought silver and gold

Reduce borrowings........ and wait for the plunge

In the looming recession it is best for equity investors to reposition their shaeholding into financial and utilities stock. The past 4 recessions had taught investors to stick with reits and banks. I don't understand why forumers are advising people to flee the property market.

I think it depends on WHY some investors / traders are in the property market gua
Those who bought in at a height... self explanatory
Those who bought at a good rental yield can sit on it and still make $.

Dont see what is the fuss about. Im in land banking, and when recession comes comparing to building property and paper assets, land banking is much more a better choice.

Nevertheless, have sufficient cash in hand to bail out my current debt with the bank and still be able to purchase more land. And like @dreamer101, i still can live with my current lifestyle.

Listen guys my prediction and preparation to avoid any eventuality ,nothing looks good so better prepare
At least 3 years of basic cash

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Added on September 7, 2011, 9:25 am1.Stocks with high foreign ownership are likely to experience a further selldown in the next few months as foreign funds reverse back to US Treasuries and fixed income, said analysts.

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Added on September 7, 2011, 9:30 amWe should explore recession proof investment kindly advise.
Hospital, Graveyard,Food,Coffin box industry even times are bad they dont die anything else guys


This post has been edited by Fabio1: Sep 7 2011, 09:30 AM

I'm waiting to hit us. I love to purchase stuff @ bottom price and not ceiling price from the rich. All said, I will increase my luxury lifestyle, and not decrease or remain..because now me and my wiife live below luxury lifestyle.

I invested myself with further education, MBA. And diversed my career and my business.

Actually, costly funeral services are not recession-proof. The reality of worryingly high-cost funeral services in the US are making people opt for eco- and cost-friendly alternatives. I think I saw this news piece on Al Jazeera.

You guys sound as though its the end of the world. I've been through 3 recessions in my lifetime. So far none of them have severe repercussions for Malaysia..although I agree that this one may be different due to financial structural issues which may take a longer time to fix. At the end of the day, the main thing is to keep your debts low, adjust your lifestyles if you have to....and the most important is to do what is necessary to keep your job. It;s not that bad because we're a commodity exporting country and the rest of the world still needs commodities. Yes we'll be affected in some ways but it won;t be as bad as the Western world.

So what happens if you run out?

I am already not living in luxury. So I don't think the effect is going to be big. I don't need to be luxurious. Just need to have peace of mine without having to live in fear that I am broke.

getting my cash ready to vest in high dividends shares...

SINGAPORE/BEIJING (Reuters) - Singapore's finance minister said on Tuesday a global recession looked more likely than not and a Chinese official acknowledged China's growth may slow to a 10-year low, highlighting Asia's rising concern over its exposure to U.S. and European risks.

Do budget, spend within the budget. hv some money as emergency fund, the rest put in investment, short term or long term.

Something I noticed during the financial crisis in 2008 is that the McDonalds stocks are bullet proof. Quite logic ah

wodenus,

How LONG can you SURVIVE without selling anything??

Answer that FIRST...

Dreamer

ya lor.... why so takut?
do all above & just spend wisely, work harder & you be alright

Noted and well said

5 days for me

Methinks its not time to reposition into finance stocks.
A recession means these stocks will suffer.............buy DURING the recession when they are killed..........
They will get killed because the property mkt will get killed........aka U.S in 2008.
Property mkt is almost always last to tank before a recession.......watch out for China

When property mkt get killed the speculators will become defunct..........

This post has been edited by prophetjul: Sep 8 2011, 07:50 AM

hi 80toyshop,

don't mind me asking if you have any counters in mind?

Yup yup - just like horror-slashers, ALWAYS wait and ensure the body of the killer is indeed dead before "jumping in".
Best to "shoot a few small shots" into the dead body (market) to ensure it's dead / flat-lined before "jumping in"

Sorry - too much slasher movies in my younger & dumber daze

This post has been edited by wongmunkeong: Sep 8 2011, 09:18 AM

Instead of recession, i think better to look forward for what will be happening to Malaysia in the year 2019..

Dont forget about the prediction those people made before..

We can see that:-
a) Inflation is running high;
b) Unemployment is fetching up;
c) Gov Expenditure getting more;
d) And, I believe certain Gov policy were also costly to be implemented..

Better be cautious for this..

Though they keep denying about this, from those above elements, it is possible to happen..

True true - however those are things that we can affect little other than through our VOTES or via our legs (walking out).

Personally, my focus is on my OWN economy, not the country's or the world's. U'd be surprised that a few fellows in US are "enjoying the problems" of 2008 and up till now as their personal economy was incredibly fit & healthy, thus it's like a mega sales for them . Our mileage may vary here though heheh

This post has been edited by wongmunkeong: Sep 8 2011, 09:49 AM

What's gonna happen in 2019?

With dividend? when times are bad, are you sure you can still yield the same dividend return? Or unless you're talking about FD...maybe possible...

National News

I dont think cutting the subsidies is enough, there are many things that cannot be avoided..

According to www.transparency.org, our Corruption Perceptions Index is 4.4, while Singapore is 9.3, better than us..

Country recession and our country highly debt issue, i think highly debt issue is the worse part..

How about bond funds? It is going to survive through the recession? im talking about asean n malaysia bonds. not euro or US.

Thats what happened to U.S............highly geared DEBT...... methinks our paternalistic
attitude of our politics has made it too late to turn around. Just look at the population of
civil servants.........last estimate at 1.6mil.
Our pop is only around 27mil....do you need 1 civil servant to serve 17 people?

next, if our attitude of deficit spending is not reeled in, EPF will be kaput...............

see the thread in real world section

Could you please elaborate more ?

Heheh - bro, politicians live in bolehland lar, not real world
No bolehland thread/topic for politicians to share share in LYN?
Or perhaps their stuff cannot stand the light of day in public?

If you are buying Malaysia bonds, you are facing credit risks.. During that time, your bonds are hard to sell..

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Added on September 8, 2011, 2:51 pmBravo, good quote about the statistics of 1 civil servant serving 17 people..

Well, its not that i want to say we private sectors are good, but we can really see the poor service from the gov agencies..

Last few days i made a call to follow up with a government agency, and guess what? They did not even intended to answer the phone.. Even after answer the phone, they talk fiercely..

If the government keep on rising the salary of those pension people, even declared bonus, sorry la, how long can our country stand? Imagine average all those pensioners can live a long live, then all the pensioners are creditors to the country...

This post has been edited by smartinvestor01: Sep 8 2011, 02:51 PM

I bought bond funds from public mutual. Are you saying that i cannot sell my bond funds if there is credit risks? Because im not buying a particular bond, it is bond funds. So i guess there is no problem to sell through public mutual if got credit risk right?

Reminds me of the "entitlement" mentality 'ala Greece, which makes USA's problem sup sup water in terms of Debt/GDP

dunno how real the impact will be here, as forecast on car sales will peak in coming 2 mths and mx out in dec 2011. more ppl are rushing to buy more cars

kevyeoh,

So, I still can last at least 2 years without selling and without income.

What is YOUR NUMBER??

How long can you last without income and not selling anything??

Dreamer

You will quiver when you know that for budget 2011 of Rm240b,
Rm40b is for the salaries of gov servants, past and present.

If this goes on, how will the country sustain such practices?

Issue more 1 Malaysia bond. Create more creative tax for us to pay.

edyek,

Increase LEGAL retirement age to 75. Keep the EPF money 20 years longer.. Sell the IDEA as helping RAKYAT to save for retirement..

Dreamer

Brilliant too. From age 50 last time to 55. And yes, prolong it to 75 will make a big difference.

And I cannot imagine those old civil servants can work as efficient as those younger ones (and gov still need to pay them). Plus, more younger civil servants will join the boleh family. Thus more salary needed to be paid.

Cycle, cycle, cycle.

Illwill it be save to put money in bank locally by then?

This post has been edited by Gary1981: Sep 9 2011, 12:28 AM

Talking about EPF makes me puke.
Keep there longer, then you will see how they misused the Rakyat fund to the max.

There are a lot of occasion which I can feel is that insider buy shares, EPF eat those insider shares and push them up. What the crap is this kind of joke!!

When economy take a boom, share market return more than 100%, EPF declaring 5%+... This is BS to the max, and you can see how they use Rakyat money to make more money for their own

AND discontine the LUMP sum EPF withdrawals.......use annuities........... this will prolong the EPF monies.....
whatever is left of it

prophetjul,

The BEST part of this is IT does not affect civil servants since civil servants are not on EPF.

Dreamer

In addition, allow non-EPF contributors (ie. biz people) to contribute to EPF-like scheme and also top-up for parents and stuff.
"Give the Gomen your cash to manage M'sians, U cant manage it"?

Thats right...........AND they will continue with MGS bond issues to be subscribed by EPF to............to
fund the paying of the 1.6mil GOV SERVANTS salaries and pensions............

Whatta a nice merry go round......... till the EPF cow becomes.............................




This post has been edited by prophetjul: Sep 9 2011, 08:50 AM

That why I don't contribute EPF now. Only contribute when I was still employed.

Not flexible enough for me.

I really no eye see about it..

I guess they are going to announce another increment to the civil servants..

Well, their perception..;'... who cares about the private sector employees', are making me quite fed-up..

They did not do their part to care about the private sector employees..

If this practice continues, we are heading to a more heavily debt nation, thanks to their irrational policy..

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Added on September 13, 2011, 1:02 pmWell, i cannot help to be pessimistic in this sense..

I am now in the watch for the Malaysian economy over the time, the most important time to watch is between the year 2017 to 2021..

MCA comments

Check on the link..

Also sounded like if our country do not achieve high income status in 2020, we will be like Indonesia and Vietnam..

Then, the comments by Dato Tan Seri Idris Jala then i added before also around that time, which is in 2019.

Though, the nation denied the comment, it is better to be extra careful..

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Added on September 13, 2011, 1:04 pmCredit risks are due to default problems by bond issuing companies, which are not related to Public Mutual.. Public Mutual selects the most secure companies who are issuing those bonds..

Anyway, it really depends on the business of those bond issuing companies by that time..

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Added on September 13, 2011, 1:06 pmI think international banks.. Just my opinion..

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Added on September 14, 2011, 10:23 amLets assume that a civil servant work with a basic salary of RM2500, monthly pension is RM1250..

He retires at the age of 58, lives until the age of 80 (Conservative target), the pensioner will get RM15,000 per year just by staying at home, for the 22 years, he gets RM330,000..

Oh my gosh, not yet add the bonus that they can even get without working. And i am only calculating one single staff, how about if we calculate the millions of staff going for retirement soon..



This post has been edited by smartinvestor01: Sep 14 2011, 10:23 AM

Even if going for international banks, be careful too, US and European banks are risky.

I will vote for Singapore banks today.

izzit there will be a recession ?

like this is it better for me to defer buying my bmw with rm100k dp for the time being and keep the cash?

i agreed! it may offer very low interest rate but at least u know you'll be withdraw $$$ when u need it. aviod us or euro banks

Buy what you need the most and invest the rest of the money.
At least try to preserve the value of your money.

put in as1m ok?
or pay into housing loan better?

singapore more likely to get hit by recession 1st/ or at least the technical ones

I wonder why the Euros aren't hitting on Singapore ever since the OECD tax haven blacklist. You'd think if the Euros were strapped for cash, they'd get at those 'pirate lairs'.

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Added on September 14, 2011, 4:20 pmOh wait, they've already been removed from the uncooperative list.

This post has been edited by trencher10: Sep 14 2011, 04:20 PM

Well, i agree with you..

Singapore's economy is at least more safe.. ^^

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Added on September 14, 2011, 11:21 pmI dont think so..

You can see how the country control the inflation rate of the country..

Even the corruption index of the Singapore country is much better compared to our nation..

Check it in Transparency Index

It is somewhere in this website..

Malaysia is rated as 4.4, while Singapore is 9.3, which is slightly more cleaner than the nation.

This post has been edited by smartinvestor01: Sep 14 2011, 11:21 PM

SPOT ON. The key is how to preserve the value of your money.
"There is no ceiling for GOLD …because there is no floor in currencies." - Peter Schiff

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Added on September 14, 2011, 11:42 pm
Robin, here's what thousands of people are doing today...
Buy Genneva Gold and use the monthly hibah (gift based on Shariah principles open to all communities) to pay whatever loans or children's education. Seriously. I'm one of them.... the children's education part I mean. At my age, it would be hell if still have housing loan in the current economic climate of uncertainties.

Sigh.

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Added on September 14, 2011, 11:44 pm
Yeah, use Account 2 of EPF to the max!

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Added on September 14, 2011, 11:50 pm
The answer is NO. Too tired now to summarize the discussion between wodenus and I.
Follow the thread at http://forum.lowyat.net/index.php?showtopi...post&p=43622596

Goodnite.


This post has been edited by PatEagle: Sep 14 2011, 11:50 PM

Genneva Gold - how much is the price per gram compared to others like UOB's physical or gold account?
From my earlier checks and readings, it's at a premium vs other "real gold" and the premium may be the "returns"/hibah "one gets back", thus one is paying one self... sounds like..
My apologies if i'm mistaken

Like 30% above spot........if you like paying yerself.........

The verdict is in. Gold taikor Prophetjul has spoken

BTW, just to share why/how i checked "Geneva" out:

Email a few months ago
------
Based on what i understand and know, it's a sucker's game for customers (or should i say greedy fools). Check this out - spells it out easily how their business model works:
http://www.guizai.com/finance/genneva-gold-investment
Here is how they operate:
1. They usually buy the gold from UOB bullion based on spot price and sell you at 20%-24% markup price
2. They paid their sales agent commission 1.5% for selling this program every time you renew monthly. A total of 18% a year.
3. They promised to buy from you 100% based on your last selling price and pay you 2% 30 days later (but refuse to write down in black and white invoice for 2% as payment but as rebate as discount)
4. The business is usually registered in Malaysia or a Condo address in Singapore with website full of spelling errors and no detailed mention of founders or their management team.

With the markup, they pay U with your own $ ;P. How long can this last? It depends on how many suckers continue buying.
Mama says dont pay $1.24 for something everyone is selling for $1, to make/sellback $0.02 per month AND it's not written in any contract

--------
On Fri, Jul 15, 2011 at 10:46 PM, XXX <xxx> wrote:

Hi there, MK.

Gold Investment 1.5-2% Montly Interest Rate.... Too Good To Be True.

Recalled telling you one of my friends is doing this gold investment thing.
He was unable/ reluctant to give me the details one year ago but recently when we
met up, he told me the company name is Geneva/ Gineva.....
Giving upto 1.5-2% interest rate/ month based on the amout u buy.

When asked hw come they are willing to share the profit with buyers...
His answer is interesting: " These companies are buying many many kgs of GOLD
they got good rate....so when we buy ..the use our money for further purchase of gold."
Can GOLD be purchased at lower rate if bought in a bulk....???
Sounds news to me....GOLD is commodity...
Not any barangan in TESCO, Giant...MyDin? True/ False???

There are many stories on this Geneva/Gineva Gold investment online.

However, online resources aside, have you heard of this Geneva/Gineva?

I have to admit that this is not my field...as you read much more than I do on this
area. Kindly share your expert opinion.....before you share with Personal Money.

Whaahhhhhahahahaha

This post has been edited by wongmunkeong: Sep 15 2011, 10:55 AM

They CAN sustain the 1.5% payment PROVIDED their sales continue to ride on the gold wave(it could be
TULIPS as long as its the intthing)
Imagine if gold price turns down 30% today and the flavour goes out of the window?

Yeah.
And now they using islamic "approach", "Hibah". Sigh.. i thought something different. Check check, same flers behind the scene.

NIce stuff here. Eye opener, especially the blog

Ponzie scheme using overpriced gold as an 'insurance'; mind you many 'educated' ppl fell for the ruse due to the insurance (you will not lose all your money since you already have a gold bar). Any1 looked at the purity of GXXXXXX gold?
Looks too shinning to be 999 more like 916.

Was GXXXXXX Gold ever called Swiss Gold?

Anybody with a sane mind will tell you this Genneva ( purposely make it sounds like Geneva?) is a PONZI scheme and cannot sustain. Please don't be so foolish guys. Do you seriosuly think a company can afford to pay to 20% to 30% annual interest? Sigh.........

Pls do not join or buy the gold sold by this company if you do not want to lose your hard earned money!

But, I know, the ponzi will continue...simply because people are greedy, and there are also enoug suckers around.

take care bros

"There is no ceiling for Stock market either" - Singh Kalan
I think its stupid to buy gold at this time. People think gold is safe, it is not always true. As with any trades that has bubble up, it will burst.

What is the Newton's law again?

Guyz nothing goes up indefinitely, if it did we would all be filthy rich.

Check back the historical chart of gold price and you will see that gold had never been an investment vehicle; it is more of a hedge against fiat money (inflation)

Over a 20 year period it is slightly higher then the avg inflation rate, only last 3 to 5 yrs had it provided decent returns

no recession

property fair in pnang n still got stu*** ppl buying

haha

EDit

This post has been edited by Bonescythe: Sep 15 2011, 10:59 PM

Pray tell why IS gold a bubble? Qualify please...........

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Added on September 16, 2011, 10:04 amThat right....you may wanna check yer prices over the last TEN years again...........

In USD terms 2002- $240 p OZ cometh 2011 - $1800 = 750%

In Ringgit terms 2002- Rm1150 cometh 2011 - Rm5700 = 495%

Methinks thats more than DECENT!

This post has been edited by prophetjul: Sep 16 2011, 10:05 AM

been reading some conspiracy stuff about united states of europe, it's scary
basically to reach their goal of US of Europe, they need to tank the economy so bad, or something catastrophic to change the europe ppl mind to support it