There should be more bad news coming up...wait...

In a perfect world, all the PIIGS would just announce bad news one shot killing blow... (major dip pain then lelong buys)
rather than these pecking pecking us to slow death - 'ala boiling a frog slowly, we just get used to it and THEN.. too late.

Becoming de-sensitized.. numb.. from bad news, good news, bad news.. luckily only from neck up, lower body still fine

This post has been edited by wongmunkeong: Jul 24 2012, 02:14 PM

Waiting for the exact bottom is tough.. it is better to see the P/E ratio of the exchange and gauge if it is a good deal to pick up gradually.

In the last crash, I was buying in lots with HSI at 18K (P/E 12), then at 16K, 14K, 12.5K (P/E <8!)and then purchase at rebound at 15K. Sold the fund in 2010/2011 with HSI at about 20K for a nice tidy profit. At one time the fund is at -30% .

Now with HSI at 19K and SSE at 2.1K, the china forward P/E is about 8.6

So to buy or not to buy? Anyway with China stocks, I am no longer buying mutual fund but buying though CIMB Xinhua25 fund. (0.6% management fee)

P/S Malaysia's P/E is currently 14.9, one of the highest in the world, due to our buoyant (EPF Supported) market...

This post has been edited by gark: Jul 24 2012, 02:41 PM

Tahu pun

as long EPF ada, im loyal to local markets.

Nah.. P/E 8.6.. 8 more ong hehe.

On a serious note, i usually take a peek at the PE and DY, just in case something weird at the time with PEs - happened to me before with local stock SHELL and a local REIT
A discount of 50% on average PE of 5 or more years is enough to entice 1/3 to 1/2 of my dry opportunity ammo

You do realize that EPF is using YOUR money to boost the share market so that YOU feel good right?

but i never missed to withdraw my epf every 3 monthss...

wat i mean is invst in local funds where epf support it.

P.O.N.Z.I.

Like that arrr... this kind of low valuation you want one have to wait 10-15 years one woh.. 1937, 1973, 1980, 1997, 2008.... can wait ah?

eh, got leh in end 2008 / 1st qtr 2009 - ok lar, NEARLY hit 50% discount of 5 years' average PE (for some counters)
I won't nit pick - 45% is as good as 50% for discounted PEs heheh

This post has been edited by wongmunkeong: Jul 24 2012, 03:20 PM

Hi guys, is the Income Builder by Hong Leong Assurance any good for investment? am i asking at the right place? please advice.

That is an endowment/insurance plan. This thread is on unit trust investments.

My answer - stay away from it

This post has been edited by Pink Spider: Jul 24 2012, 05:28 PM

Check out this thread/topic.
http://forum.lowyat.net/index.php?showtopi...=income+builder

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Added on July 24, 2012, 5:30 pmDont lar Pinky.
Some ppl may not want to be as involved as U in their building of financial freedom.
U think so many people thinks like us meh - where "I AM THE ONE THAT CARES MOST FOR MY $ AND ASSETS" is our war cry, apart from "GET YOUR FILTHY PAWS OFF ME MONEY!" before striking people blind and deaf

This post has been edited by wongmunkeong: Jul 24 2012, 05:31 PM

Thank you PinkSpider, a friend of mine told me about their plan. Still dont know to invest in it or not. a few friends of mine invested and some didnt and was very against it as well i dont know why. And not you too asking me to stay away from it, it sounds really interesting and its by Hong Leong. Should it be safe?

Wong Seafood said it well...

To put it simply, endowment plans is quite safe, 99.99% won't lose u money (IF u hold to maturity i.e. do not premature cancel/withdraw), but its return probably won't beat real inflation.

I'd suggest unit trust. But ifu are the type that needs ppl to force u to save money, perhaps endowment plans suit u. Cos its a financial commitment...u early withdraw/terminate, u lose part of ur capital

Don't put SAFETY ahead of FREEDOM alone.
It may be safe but it also cannot get U your financial freedom if it's the main vehicle to your financial freedom.
As a side-cart - perhaps (as in a very small % of your total net worth) hehe

This post has been edited by wongmunkeong: Jul 24 2012, 05:38 PM

When time is on your side, do not be too scared of taking some risk.

Remember this thing called INFLATION

Hey, U confusing me lar .
1st U say "99.99% wont lose money",
then U say "probably won't beat real inflation"

In my tiny mind, if it probably won't beat real inflation, it ALREADY has lost lor, especially when i can't touch the donkey $ for umpteenth years.
UNLESS... it comes with nice changgih tax rebate (best) or relief (well, 26% is better than 0) heheh.

Rhetorical Qs ar Pinky, just using yr posting as a setup

If look through the list, for eg the website below, most countries are in deficit. Even countries like USA, UK, Japan etc.

http://www.gfmag.com/tools/global-database...l#axzz21XbqlYs0

Whereas the countries in Euro, eg Greece cannot even pay their bills if they don't get the next round of loans.

Therefore comparing the troubles in Euro to Malaysia or any country in deficit is like comparing apples and oranges. Or durians and rambutans, whichever you prefer.

Don't get me wrong - I'm not defending, nor condemning the actions of this government as running a deficit is NOT necessarily a bad thing, just like a company with debts is not necessarily a bad thing. But this topic would easily take up another forum section all by itself and more. And it's not my point.

The point, which you missed altogether, is the fact that the Euro is grouping of different countries tied by a common currency, but not the fiscal or political responsibilities. For eg, if Greece had its own currency, and given its problems, it would have (1) defaulted, or (2) devalued it's currency long ago. But it can do neither, because the Euro is not for it to do as it pleases. And therein lies the problem.

So no, I wasn't talking about simple deficits.

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Added on July 24, 2012, 9:14 pmIt's not just a case of feeling good. The value of your investments have gone up as well, in real value.

On the other hand, what do you think the downside(s) are?


This post has been edited by howszat: Jul 24 2012, 09:14 PM