So, what will happen then if #3 does occur?

Gomen budget is in myr, petronas income is in us$, over 30% gomen budget is depending on petronas. To compensate for falling oil price, the gomen allowed myr to depreciate to meet budget. as oil price is unlikely to rise in the medium term, gomen is likely to allow myr to depreciate further,

Anyone invested overseas for over a year gained in myr, be it stocks, property, etc.

Err... No. I had said no point disucssing RM denominated methods as they have no fx exposure and none of the usual methods would have yielded more than the depr of 18% or 27% in 9 or 12 months.

This post has been edited by AVFAN: Sep 20 2015, 01:00 AM

Which is why never say never put in sgd or usd savings account!!

For usa and sg stocks, it is possible to still have some net cap gain if trading was done well. E.g. I did trade a couple of sg reits a couple of times in the last 2 years, worked out ok. But equities trading is not what we want to discuss here.

A new monetary system will replace fiat currency..

this is completely normal and totally expected.. every 30 years, a new monetary system is introduced.
Gold Exchange Standard, Brenton Woods and Fiat money.

we are at the point of change.

If you noticed, a World War is usually expected.. However, there won't be World War 3. This is because our world will forever be in a perpetual state of war and instability. Today, the war in Middle East is pretty much a world war in terms of money spent and people killed.

Also, the blowback is causing huge issues. Such as mass refugees fleeing to Europe. Like parasites, the refugees will eat up their adopted states welfare fund and burden the tax system.. Also, the muslims will bring along their religion to progressive locations such as Sweden and Germany. This will be a bad thing. They will destroy their adopted states economy and culture. The irony is, Germany and Sweden helped to destroy the middle east. So in payback, they get the muslim refugees who will destroy their economy..

You see, everything in the world is inter-connected. For instance, Chinas economy slump means Australia will suffer alot (40% australian exports go to China). I expect the Australian housing bubble to burst.. Oil drop, Russian ruble collapses. Our Ringgit suffered tremendously because of falling commodity prices..

Heck, even mighty Singapore will suffer soon with their aging population of Baby Boomers. They simply don't have enough young workers to replace them and eventually, their economy will collapse or the foreign talent import will completely change what it means to be Singaporean..

This post has been edited by the99percent1: Sep 20 2015, 01:53 AM

bTW AUD, sgd & usd INVESTMENT, which will be a better choice?
In 5 years time my kid will most likely go to one of these countries for tertiary education and spend 500k, although I ask him to aim for scholarship. Oz is very dependent on Commodities, Spore on Asean, CHina n US economies and US is one of the biggest debtor in the world. Would their currencies still be as strong as now in 5 years time, and appreciated another 35% against MYR.

The above post suggested OZ and Spore will be in trouble too, so left with US only?

BTW OT, is it wise to entice a child to study hard to get a scholarship so that 500k will go into his pocket?

This post has been edited by MGM: Sep 20 2015, 07:17 AM

You got to put things in perspective. The above post is "mike meloney and those gold sellers" assertion. They have their interest to protect. Their views were very plausible during the QE times. But now that QE is over for USA, nothing happens I won't put that "theory" in mind when investing. If you believe, then buy gold

The is no "the best" choice. You can invest in all three Aud, Sgd and Usd if you are still undecided which country your kids will go to. The thing is if you are in stock market, U.S. dividends are taxed. Australia taxes both dividend and capital gain. Best is Singapore, tax free. (I stand corrected)

On economy, all 3 are stronger than Malaysia. Economy got ups and downs. Invest with long term view and those noise will even out

MGM,

Why don't you convert some of your RM into all 3 currencies now?? That makes the most sense.

Dreamer

Don't go to uni..

Tell your son to come out and work.. or get a vocational degree such as technician, electrician or something that pays you well whilst you study.

In no way will he be able to repay you his study loan.

And what's the point of spending 500k only to come out and work for 1.5k salary.. better to take the 500k and start a business straight away..

May be this advice suits your children well but definately not mine, who is already under scholarship in a private school. It will not be a loan to him but a gift. BTW I know my child better than you.

fair enough.. just make sure you advise him well.

His generation will enter the job force with much lesser work going around. He needs to prepare for it well in advance..

Good morning.

Just finished reading all posts in the last three pages. Great discussion there,.. tq.

A very good perspective of someone well-invested in local economy.

MGM,.. you mentioned you have approx. 6%-8% every year. Is the bigger portion of this 6% to 8% from ASX ? I believed you do have a substantial amount in ASX !

If that is the case earthlings should drastically reduce procreation.

We are not talking about quantity here, or who has more money here.

Yes, my percentage is more than yours,.. and you can still live with a percentage half of mine. But if you are not diversified adequately, this percentage you are earning is highly at risk, and tends to erode your purchasing power soon.

Major portion on plantation land, then ASx then EPF. Land price based on transacted market value.

No that lah, just saying I don't feel lousy earning half as much as you if based on the same amt of investm and I am easily contented. Sorry if I offended you. As for purchasing power, I am currently busy replacing my furniture , aircons, electrical appliances b4 prices go up. Also thinking of changing car.

This post has been edited by MGM: Sep 20 2015, 11:08 AM

High can go higher. But, if the RM rebounds, it will NOT be able to rebound too much because of the drop that it has experienced, UNLESS there is a very low peg put in-place. We can have a high chance of being right that a peg will not imposed because :-

1) The Govern't has repeatedly said they will not peg.
2) The reserves may not be sufficient to put a peg in=place.

Furthermore, if you are in into the foreign currency for the longterm, it's okay if the RM rebounds after you bought into the foreign currency with your RM. Because in the long run, the RM has a very high chance to lose out to foreign currencies too,... time and again this has been proven.

So, don't worry.

Which currency to invest in, which currency is the safest ? Look at the graphs - which currency has a high chance of appreciating against the RM and against other currencies ? Which monetary authority has always had a view that her currency should be allowed to be on a gradual appreciation basis ? The answer is obvious.

No offence taken, man,...

Frankly, I'm not that much about money too,... to me, money is just a means of survival and a necessity. I also noticed that money brings abt a lot of problems.

That's a good move, buy up everything you need and do up the house , etc,... before prices increased. Too bad we can't push the children through U first before the USD increases further.