It doesn't matter what I believe, I am just trying the complete the full story. What is your take on the price movement of Oil within the next couple of years?

Congrats . I unfortunatefully didn't manage to diversified, just like what dreamer said, put everything in the same basket. But luckily I can still live with 2% of my networth as my yearly expenses with negligible debts(4%). Was thinking about investing in s-reits few years ago when I started following a Sporean's blog http://singaporeanstocksinvestor.blogspot.sg/, at which time exch-rate @rm2.50.

Say if I had invested rm250k(SGD100k) in S-reit(instead of ASx) 3 years ago,  would my present value in S-reit > SGD100k (rm300k)? My present value of the ASx is roughly rm250k+21%=rm302k.

Based on the chart below, FTSE ST Real Estate Investment Trusts Index SIN: XX:FSTAS8670 was about the same level 3 years ago compare to now.~700. Does the chart includes dividend?

taxation, transfer fees, etc.. maybe 79k profit.. still decent over 2 years. question is.. u have RM250k lying around?

MGM,

Are you PREPARED if RM drop further or Malaysia economy crashes and never recover??

<<I unfortunatefully didn't manage to diversified, >>

The past is gone.  Are you DIVERSIFIED enough to prepare for the worst in the FUTURE??

Dreamer

MGM,

Are you PREPARED if RM drop further or Malaysia economy crashes and never recover??

<<I unfortunatefully didn't manage to diversified, >>

The past is gone.  Are you DIVERSIFIED enough to prepare for the worst in the FUTURE??

Dreamer

I am prepared even if rm drop to 5.00 against USD. Sorry but I don't believe Mysia econ will crash n not recover, on this I have more faith with DrZeti  than Dreamer.
I am not DIVERSIFIED enough if u mean investing out of Mysia. My networth within Mysia consists of oilpalm estates, ASx and EPF. I thought I am diversified enough within Mysia.  I have some shares in KLSE n some private companies and a fully paid house which I am staying in.
I also believe that oil price will rebound. Worst come to worst I just have to shelf my plan of early retirement and continue to work as I can live with my employment income without touching my networth which is appreciating ~6-8%/year although in RM terms.
I also believe that it is too late to diversified out at the current exch rate, so just have to wait out for the rebound. Or maybe I will start buying nonlocal UT.
I am treating my ASx as a high-interest savings acc waiting to channel them when the time is right. My ASx has appreciated by 46% since 2009, while USD/MYR has increase from 3.5 to 4.2, 20% increase (at 46% USD/MYR has to touch 5.11).

Would like to see your view on Oil for the next 5 years?

I also believe that it is too late to diversified out at the current exch rate, so just have to wait out for the rebound.

Just a few months ago when US$ touches 3.80 I also thought it is too late. Or BNM will intervene. Then it breached 4.00 psychology barrier and I thought that is the max it could go. And then it breached 4.30....is 4.50, 4.80, or even 5.00 coming ?

Now US$ is taking a breather. It is a good time to enter if you really believe in diversifying. There won't be the "best time" for investment. You can only see a longer term view of the RM - will it come back ? Or hopeless ? And then hold on to your foresight and act accordingly.

"Waiting for rebound" is just an excuse for the "not so bold" 

I am more into preserving my wealth.

MGM,

<<Sorry but I don't believe Mysia econ will crash n not recover, on this I have more faith with DrZeti  than Dreamer.>>

What if she no longer in charge of BNM??

<<Would like to see your view on Oil for the next 5 years?>>

It is not going to recover over the next 5 years.  Beyond the next 5 years, Oil would not matter to Malaysia anymore since Malaysia would not export enough oil to have enough Oil Money.  So, without the Oil Money, how is THE GOVERNMENT to continue deficit spending and keep the economy going??

<<continue to work as I can live with my employment income?>>

If the economy crashes, you will not have a job.

<<my networth which is appreciating ~6-8%/year although in RM terms.>>

Which may or may not generate enough cash flow in RM to feed you and your family.

It is VERY SIMPLE.

Why take the RISK that you might be wrong?? Why put all your eggs into ONE basket??? You have ENOUGH.  Having MORE is not that important.  Making sure that you do not lose money is more important.

Dreamer

MGM,

Then, why are you putting all your eggs into ONE basket??  If this basket crashes, you will not be able to get any back.  There is no second chance for you.

Dreamer

Hello gurus, this is a good thread to read..

but i just have one question... why do Brunei dollar is higher compared to myr in view of being the same oil producing countries which is affected by the price falling commodities.

where as brunei to sing dollar is at 1:1 appx.

or is it our country fundamentals that are dragging ringgit down?

p/s: still trying to read all the posts here

Becos SGD and BND are pegged together.

http://www.nationmultimedia.com/aec/Brunei...r-30208975.html

Hi MGM,.. about the chart, if you say that the level is the same between today and three years ago, then I would say that dividend has not been factored in.

For the REITs in my portfolio, I can tell for certain that the yield has been, on the average, at least 4% per year for the last THREE years, using your frame of time reference. I checked my updated spreadsheet a moment ago, the yield is at 7.98%.

My unrealized capital gain is now at 38%. Let's take a quarter of that, hence at 9.5%, since we are going to use the last three years as the time reference.

So, totalling up the above : 4% + 9.5% = 13% gain.

Had you invested SGD100K into SGREITs three years ago, then : SGD100K + 13% gain = SGD113000 sitting in Singapore now.

If you liquidate and realize your profits by selling-off everything and converting back into the RM, bringing back to Msia to invest more into the ASX, you would have : SGD113000 x 2.98 (conservative exchange rate) = MYR336740 dropping into your bank account.

You would have profited by : MYR336740 - MYR250000 = MYR86740.[SIZE=7]

I have taken very, very conservative figures in my calculation. The profit figure derived above should be higher !

The snag here is : the above calculation is based on my portfolio of REITs and some Dividend Stocks. Not across the board of REITs.

I think I can even stop working now, and my networth will still appreciating at 4-6% (but in depreciating RM).

Showtime n dreamer, What is your take on properties in Mysia?

How easy is it for a country peg its own currency to another country's currency? For example, Brunei does it but Malaysia does not, is it because it will be a lot more difficult to do so while a smaller country such as Brunei with smaller populations is easier?