This time very funny... bond drop, equity drop, gold drop, reit drop....all due to qe pullback cause no more easy money.

So whats left to invest that does not need easy money?

But i think this drop might be temporary... to flush out all cheap credit which has inflated all asset class.

Now short term bonds A to AAA grade will be the safest, less than 3 years. Govt bond is a no no.

This post has been edited by gark: Jun 12 2013, 10:24 PM

Minor pop only. If real correction, expect minimum -20% or more... anything less is just a bump on the road.

And sometimes correction takes some time to play out..usually 1-2 months, investing in too early could end up catching falling knife.

This post has been edited by gark: Jun 13 2013, 10:23 AM

Want to play catch knife.. also must play smart. Catch knife only after it has fallen to the floor, no one wants it.. left to pick up only.

EPF cannot sustain KLCI as FF pulls out investment... now Kabooming...

Next will be A to AAA bonds if this continues... if FF pull out even more money.

You can see the MGS & A-AAA corporate yield curve.. if rising means, money is being pulled out

https://fast.bnm.gov.my/

This post has been edited by gark: Jun 13 2013, 11:18 AM

Heart must be steady...

OPR & BLR is under control of BNM...so no one have any say.

But.. FF/Local Funds can dictate yield curve... if yield keep rising, companies will have more cost/trouble to raise capital

When this happen BNM will be 'pressured' to raise OPR to match but not necessary they will do so.

But you can see the trend if the banks tighten loan conditions & have more 'promotion' for FD, means the real interest rate is rising.

And how do you term expensive? Just because it is trading at 17XX?

This post has been edited by gark: Jun 13 2013, 11:25 AM

No.. tooth fairy told me...
.
.
.
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of course by reading lah...

Hahaha historical high or not doesn't matter, you need to look at data otherwise tokok sing song only.

Yes, it is on the high side but it is not too high.. KLCI FY13 PE is only 15.7x vs MGS 3.2% is currently FAIR, if MGS yield goes up further however, PE will tend to adjust downward.

Too many to count....

Wah... wat book you want? Many titles loh.

Most of my book is in e-pub format, read on ipad one...

Let me know what you want to read up and i will recommend you a book...which you can then DL buy the ebook online...

This post has been edited by gark: Jun 13 2013, 11:48 AM

All balik kampung... but today ah i saw at bloomberg tv.. some smart guy predict Yen at 150 end of the year.

Looks like Indo Central bank is fighting a losing battle against FF bond seller... Indo bond has been badly hit by selldown.

Indo Central Bank announced OPR goes up another 25 basis point to 6% second time this week. Stocks, bonds and property will come tumbling down.....

How long can BNM last?

This post has been edited by gark: Jun 13 2013, 04:06 PM

FF withdraw is due to QE reduction... no more cheap credit for them to inflate assets. In turn USD goes up, hence they are dumping foreign holdings to hold back USD...

You got ah?

If BNM raise OPR, MY bonds will also koyak no matter A or AAA...

Heart must be steady...

Anyway put in MM also no use.. RM is falling against USD...

This post has been edited by gark: Jun 13 2013, 04:33 PM

Not necessary he trade around...

All bond UT are marked to market...so the interest remains, just the value of the bond less, if he hold to maturity ok wat..

But most bonds fund will NOT hold to maturity...

This post has been edited by gark: Jun 13 2013, 04:35 PM

I wonder those retailers who bought those super low interest perpetual bond last year how ah? Perpetual means no maturity date.

Kena con 1 more time...

This post has been edited by gark: Jun 13 2013, 04:40 PM

That one not steady lar... means cash out...