Wednesday, October 6, 2010

Investment Decision – Politic-Economic View

Here we go..a lot of my friends asked me about the opportunities in doing the investment. I am BBA Finance degree holder and CFA Level 1 member, but it doesn't mean that i am expertise in investment matters. Yeahh…i admit it i was involved in FX trading, and still on it until now. I made a lot of profits, but when market against my decisions – the losses came above my profits! Oooucchh..it is very hurt! Hehehe..Take it or leave it! It is the EXPERIENCES!

Forget about my FX! I would like to share with you the basic view in investment decision. I mean, where the best place (instrument) you can invest with the right time and the right place. As we know, in Malaysia, we have too much money instrument a.k.a financial instrument a.k.a investment instrument. Bumiputra (usually refer to Malays) are very famous for ASB. Why ASB? Because it is well-known for higher return in dividend and bonus payout every year. ASB can give you a double return in every 6.7 to 7 years for your investment. (e;g : You put RM100k in ASB and don’t touch it. Wait for 6-7 years and your money will be double to RM200k). Hehehe..not many people know about it right?

Other financial instruments – we have Stocks, Unit Trust, Bonds, Cagamas, Derivatives (Futures etc), Gold and Property. Of course there are others – you can ask Mr. Google for it. ;)

quo  Politic-Economic Quadrant

What you can see above is an illustration of Politic-Economic Quadrant. It is same understanding with other quadrant you have before – Important-Urgent Quad, MATRIX etc. There are straight understanding for the PE Quad above. When the right time to invest for the right instrument. Everybody used to have an economy knowledge and they think it is crucial to have a lot of readings about the politics, to support their investment decision. Yeahh..Economy?Politic? Both are important. But when the exact time to enter the market and start the investment account? Don’t ask me for it. It is your natural skill – research, information, experiences, and luck! And the rest – profits or losses.

Thank for reading guys! Text or leave a comments if you have anything to say ;)

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