OPR is not going to be raised with current economy condition.

It is suicide for central bank to raise rate at this moment or near term, when equities market is volatile, economy is getting slower and no pressure of inflation, (commodities price soft and gold price plunging).

Having said that, I would agree Reit price should go down a bit more, as at the moment, yield is too low (due to too much cash chasing too little thing).

I do not understand why many keep on saying interest rate is going to be hike... too many media cooking?

Bond price drop sending yield higher, yes.
Interest rate, over night rate that set by central bank being raised? Chance is remote.

Malaysia 10 years is about always at around 3.5~4%.

Actually it is not RM drop, but USD has tremendous strength.
RM vs AUD, is actually appreciating.

Those said USD is worthless, and short USD, bear USD, now being hit left and right, due to massive QE previously.
As many USD bear, either short USD, holding others currency or go into gold market.

The extreme USD bear, short USD, long gold, is the worst scenario for time being.
Left being whacked, right being slapped.

This post has been edited by cherroy: Jun 26 2013, 03:04 PM

Actually, businesses already slow since May...

I don't think there will be a liquidity crunch, just many investors, hedge fund, speculators too addicted to the QE already, suddenly, said QE tapering, then it is like end of the world.

US economy is rather intact, from various economy data showing. Yes, not growing robust and rapidly, but at slow and steady pace. Not in recession, not depression.

China liquidity crunch is easier to solve as compared to US subprime mess.
PBOC can provide liquidity if situation turn worse, after all, China capital market and banking is not as open and free as US. So PBOC should able to solve it much easier than US subprime version.
After all, a minor liquidity crunch may be good for long term future, by killing off persistent high inflation in China, as well as taming the loan growth that spur the inflation.

If there is severe liquidity crunch like 2008 crisis, then it may provide a second life chance to buy dirt cheap stock again.
Seldom lottery hit twice one...

Friday (end of month trading day) is always 1 batang day (after 4pm) ...

Diamond is one of the hardest material in this world.
It is being used to cutting tool in industrial usage.

So not something good if a sharp diamond is falling on your head from sky...

It is a crazy world right now.

Don't like better economy data...

See, market too much addict to QE drug already, market cannot think rationally already...

This post has been edited by cherroy: Jun 26 2013, 09:21 PM

If this logic is right, means if GDP number register negative value even better......

High income one surely single tier better.

Corporate tax 25%, personal 26%.
Can save 1% through single tier.

There is a lot lot of money.

For eg.
If a company gives 10 million in total dividend pa. there is 100 company doing so, it means 1 billion of dividend.
out of 1 billion, if we assume 25% is given to minority shareholders that subjected to low tax bracket or don't need to pay tax one (especially retired person whereby no income already so even added dividend so under taxable bracket), means 250 million is given to minority shareholders.
250 x 25% = potential 62.5 million refund!

I believe KLSE listed company give more than 1 billion of dividend annually. I no count on this, correct me if I am wrong.

Somemore, a lot of company have plenty of tax credit around, so it is a big waste for those tax credit not being utilised, particular for those shareholders that have low tax bracket or under taxable bracket one, and particularly for retired person.

This post has been edited by cherroy: Jun 27 2013, 03:03 PM

It depends on creativity in number and figure.

If this kind of counting use in account, then you see tons of profit.
But pocket empty one...

The reason why we have many account issue nowadays?

The problem of this, sell then price reverse to upside, then habis...

I tried this method long long time ago during bear market. (decade back)
I can say this method didn't work well (at least for me), as you need to fish at bottom, often drowned in bottom with this method.

End up share don't have and losing money...

I only know to count how much dividend I received, then ensure the dividend paid is not due to company increase in borrowing, or reduce the significant the cash pile of the company.

Then you must be a good and experienced golfer?

Hitting hole in one...

This post has been edited by cherroy: Jul 4 2013, 11:13 AM

I don't understand some route like Pg-Sg, MAS doesn't have direct flight at all.

Passenger want to go to Sg, either take Airasia or Silkair.
Silkair has 4-5 flight daily from Pg-Sg, if this is not profitable route, I do not think Silkair has so many flight daily.

Bare in mind, a return flight ticket of Silkair range from Rm500-800. This is only an hour flight journey.
So why Mas do not offer such a route?

This post has been edited by cherroy: Jul 8 2013, 03:22 PM

If one over-commit on loan, even steel rice bowl won't going to help.

Cannot be all wages or more than 60% of wages in steel rice bowl goes into repayment of bank loan.

For eg. buy car with 30% of wages, another 20% for personal loan, this has not yet counted the maintenance cost of car, petrol, basic spending like electricity bill etc.
Even has steel rice bowl won't going to help if over-commit.

So it is good that BNM set strict loan guidelines to prevent defaulting risk in the future.

Defaulted faster could means smaller issue or non-issue

But let it dragging become like a mountain, only then default, then it could threaten the economy and financial system entirely.
This was what happening for subprime mess.

Uncontrollable personal loan can be very similar version to subprime loan as well.

As personal loan is not something good to have.

Unlike housing loan, it gives people shelter as well as an asset that still can recoup the money paid.
But personal loan, a lot of time, ended up spending it away.

Not so good thing happens earlier is better than latter.

This post has been edited by cherroy: Jul 9 2013, 10:03 PM

Usually, the one really make big fat profit is those selling their goods/services at a premium.

Branded bags, a few thousand people also rushing to buy.
Phone, people look for those branded/premium phone name, 2K plus also want.

Those business concentrate on lower price one, is very tough and can be very competiitve for management to run.

Not to say, lower price related business one must be no good, it can have its own strength as well.
But lower price one is more easy to be replaced. As consumer look at price only, and consumer loyal to price, instead of brand.

It is those business with their consumer loyal to their brand, that company/business can charge more premium.

Must get the balance right. Lower price attract customer, at the same time, must build up the brand as well.

There is remote chance that Fed or most central banks raising rate (after last few week of interest rate story cooking) in the near term (1-2 years down the road).
The most is QE tapering or no more new QE.

Same with local interest rate situation.

While if interest rate is hiked, actually it is good thing to have as it means economy is doing well already.

At the moment or situation, the only wrong decision that central bank can make is raising rate too slow, and let inflation running wild.

In fact, what I see is that most central banks are not hawkish enough on rate.
We have been running at negative real interest rate for sometimes already, and yet most central banks do not act on it.

So I do not see how interest rate can go up in near term.

Now Japan set inflation target, Fed also set inflation target.
Both want some inflation.

So there is remote chance only when central banks "want" some inflation.