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 Dreamer's View on Personal Finance, Thread to post my view and for questions

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maxwoo
post Jul 16 2007, 07:56 PM

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QUOTE(dreamer101 @ Jul 16 2007, 06:54 PM)
If you buy good solid stock and the lot size is only 100, you can start with little money.
ejleemy,

You do not understand the basic of asset allocation model.  We are using an A/C in USA.  We are investing on asset, stock, bond all over the world.  It is NOT in USA ONLY.

Do you understand that in most cases, you can use asset classes to manage your risk?  For example, in recession when the USA stock market clashes, the bond market is doing very well.  By having investment in both, you diversified and cancel out each other.  Due to re-balancing, you always buy low and sell high.

For example, to protect against US currency devaluation, I invest on international stock index and international REAL ESTATE.  So, I diversified and manage the risk.  You can do this as an individual investor in USA easily.  I am my own fund manager.  I can hedge my risk.  This is call the science of investing.
Dreamer,

Actually I don't quite understand something here. Many said that if the stock market crashed, switch to bond. When the market really crashes, can we really switch in time to bond? This bond thingy, is it limitless? I mean can it be fully bought? If we all rush to buy bond when the stock market crashes, can there be enough bond for all of us to buy?

Cheers,
max
maxwoo
post Jul 16 2007, 09:09 PM

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QUOTE(dreamer101 @ Jul 16 2007, 08:31 PM)
Oops!! I made a mistake.  It should be you always lose money when you BUY HIGH and SELL LOW.

https://flagship.vanguard.com/VGApp/hnw/fun...&FundIntExt=INT

VSMGX

In USA, you can buy one fund that consist of 4 funds and they will do the re-balancing for you automatically.

Dreamer

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Dreamer,

I tried looking at the fund you mentioned but how can I invest in that particular fund. I can't find any useful link for non-US investors. Kindly advice.

max
maxwoo
post Jul 17 2007, 06:53 AM

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QUOTE(ejleemy @ Jul 16 2007, 10:29 PM)

We survived the 1997 crisis. Didn't we ? Again, please prove your statement... My view is opposite. As stated in my previous posts, if both USA and Msia were to go thru recession, USA will be the one trouble recovering given my rough analysis on current and future of USA economy.

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I think US will definitely survive any crashes coming forward. Most of us know that US is living on a borrowed money from Middle East, Japan and China and all these countries will continue to do so to ensure the stability of the world economy. Until another country can take US role as world no.1 economy, I think the whole world will continue to pump money into US.

There are various reports saying that Malaysia is not ready for another financial turmoil. Try to google it for more information. In fact, many warnings has been initiated since beginning this year. Our oil reserves is expected to finish by 2020 and by 2010, we will have to start to import oil. There's really not much time left.

max

 

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