I wonder must they invest in the other country? Can't they keep it in their reserve?

Keep trillion in the reserve get 0 grow....invest into market/shares/bond,...got few percent grow annually...1 trillion 3% got 30billion...

Government reserve doesn't work that way if i'm not mistaken...

Money has to park into somewhere, right? Either you keep the as cash in bank or buy gov bonds only. Stock, properties are totally out of equation.

Currently, there is not much place for them to park the money or place that can absorb trillions of money while still be 'safe'. That's why US has nation interest of being super power in the world. If US is not a super power, then USD or US treasuries won't be as attractive for other gov to invest into it as current situation.

It might already suffer like Asian currencies during 1997 crisis already because of massive trade deficit every year, and keep on growing.

US treasuris is classified as one of the safest investment in the world even in the period of war time, unless gov default which very very unlikely. If it does, whole world financial market might collapse already, so stil they are one of the safest investment that provide yield return. (Gold is also safe but it doesn't provide yield return).

If China gov want to keep those surplus into Yuan, then they have to convert massive trillions of USD into Yuan, consequences?
- massive appreciation on Yuan, USD plunging, hurt China export big time as China goods will no longer cheap in international market
- Politic pressure from US on China.

Reserves means foreign currency or gold. Cannot be own countries currency coz each country can print as much as it wants therefore meaningless

market is staled...

not much movement.......

market is dead today. 5% of the stock moves.

They should lower the minimum broker fee to attract small retailers back.

Market is worried on Dow Jones later on tonight. Adobe Systems post better results but gave a revenue forecast below analyst estimate. Goldman Sachs and BestBuy are reporting later on tonight; with PPI and housing starts due also.

My advise: take your profit today, and bargain hunt tomorrow.

This post has been edited by AdamG1981: Jun 17 2008, 11:05 AM

how low is low?

I'm using Hong Leong.. RM12 for brokerage fee.. a few ringgit for other fees.

Yes, volume has been anemic. Alot of clients took their money out to invest in foreign currency due to inflation fear/ depreciation of the ringgit.

This post has been edited by AdamG1981: Jun 17 2008, 10:49 AM

Me, one of them since last year or so. Hehe.
But surely not USD lah.

Haha, what positions you have now cherroy? I am betting that the Fed will not follow through the tough talk.. betting on the Euros to reach 1.58 again.

aiyo...no wonder KLCI so laggard la...all u BIG PLAYERS trasferring fund out......let us small small fish to rot here
hehehehhee.........

KLCI need some direction...who will come n rescue it ar???? hai...dunno can tahan till Sept o not...then dunno wanna exit or keep when the time comes.....(scare got snap poll, bla bla bla, etc....political instability)

If something happens in Sept. it will be unstable for a while, but at least the Malaysia Political landscape will be a bit calm than what it is now afterwards...

This post has been edited by PBB boleh: Jun 17 2008, 11:33 AM

Well, there's a lot of volatility and lack of direction in CI these days. But its best you sell on a rally, and buy after a pullback. Keeping it till Sept is not recommended.

I am not betting anything, as I don't trade forex, just got some portion of FD in AUD and NZD as part of diversification, like you said hedge against RM depreciation while getting 7-8% interest on it.

Market talk recently is about Fed is putting on word on controlling inflation only, tough talk want to control inflation, blar, blar, but actually policy won't for near term. Might be wrong or correct, only after next week Fed meeting only knows.

This post has been edited by cherroy: Jun 17 2008, 11:50 AM

Hai..of course la.....the problem is...i dun c a 'rally' coming in lately wor hehehehehhe

but for those stable/defensive stock...i will hold on to it as it has already been deemed long-term investment.....

in the end....it's up to the foreign investors to decide whether the 'change' is on a positive or a negative note.....if they take it positively...then KLCI might shoot up high later......if not......circuit breaker here i come! hehehehe

Well, it will be interesting to see if the Ben will actually raise rates during election year.

But if the Fed doesn't raise interest rate next week, the Fed's credibility is severely tarnished.