The million dollar question would be “Is it time to buy or sell?” And truly, no one has the right answer.  Once again trading in the market is dependent on a lot of gut feel as fundamentals are out.  If I can say, the market has gone crazy!  So are you one of the crazy participants? Are you game enough to put your finger in the pie?

Personally, I would ride with the tide, go for short term low gain rather than going for the deep kill; greed should be out of this equation.  Go for fundamentals if you have spare cash and waits patiently for the dividends payment while keeping your stockpile for your hopefully early retirement.

Doesn’t this sounds like a familiar environment today?……..

It is the month of August, on the shores of the Black Sea.  It is raining, and the little town looks totally deserted.  It is tough times, everybody is in debt, and everybody lives on credit.

Suddenly, a rich tourist comes to town.

He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to choose one.

The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher.

The butcher takes the 100 Euro note, and runs to pay his debt to the pig grower.

The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel.

The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town’s prostitute that in these hard times, gave her “services” on credit.

The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.

The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything.

At that moment, the tourist comes down after inspecting the rooms, and takes his 100 Euro note, after saying that he did not like any of the rooms, and leaves town.

No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism…..

And that, ladies and gentlemen, is how the United States Government is doing business today.

Wow, this sounds simple enough!!

Basically, it just means that when recession hits, one should not stop spending, in fact, everyone should be spending, spending, spending in order to allow the cash to flow.

No one should be guilty of putting the brakes on this “cash flow” machinery………

I was watching an interview of the Australian champion “butterfly” swimmer who won USD1 million in a swimming championship and was asked by the interviewer what she did with the money she won.  She said she heard that “Cash is King” so her money is still tucked safe in her saving account!

Is that what you are doing as well?  I guess with the madness in the world now and whichever corner of the world you are in, it does seem not safe to put your cash anywhere, even in the bank.  What a predicament nowadays for people with plenty of cash!!  It does seems like there is no where to go; definitely not safe under your mattress!

Let truth be told, it is definitely better to still have cash than a whole portfolio of investments that is worth a quarter of what you have invested. But, nevertheless, take to heart that you are not the only one in this dismay situation, even the best investors, people like our investment guru Warren Buffet have lost money in their investments, have made a bad judgment to the “what will be in the future” prediction.  So hang in there, I believe that time cannot get any much worst if not better.

Meantime,  people with hard cash should make some good, safe and sure-win investments to earn some profits while waiting for the good and better times.  A lot of people will just take the easy way out by putting cash in FDs, it is, no doubt, a good, safe and sure-win investment but definitely not earning your cash’s worth…. so think about it and make a harder effort to source for better “sure-win” ways….

Today people who hold cash equivalents feel comfortable.  They shouldn’t.  They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.  Indeed, the policies that government will follow in its efforts too alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”

By the sound of this report which was extracted from “The New York Times”, looks like it is wise to look at Equities especially now….

Yes,  I know…. decision, decision and decision… That’s what life is all about!

But after reading what was written by the financial guru, Mr Warren Buffet, on “Buy America, I am” in The New York Times on 16 October 2008, I guess we have to be brave to ride out the turbulence!!  I kind of like his simple rule ~~ mind you simple and yet very powerful ~~ “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”

Mr Warren Buffet further mentioned as follows:

“Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”

Mr Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company. Do read about him and his success and then his advice will be more valuable to you.

So like everyone said “The Worst is Yet to Come!”  Are you waiting for the rock bottom before deciding to buy? The decision rest on you and you alone!!

This type of investment is pretty new in Malaysia and is offered by banks; not all banks. It is a short-term investment linked to the currency market.

If you are considering investing in gold you may wonder “how am I supposed to invest in gold?”. Some people will rush to buy gold jewelleries because they serve dual purposes; as an ornament and a great gift, it will appreciate in value – good investment.

However, today gold are traded everywhere, in the share market, in unit trust and also traded by banks. Some are traded on paper value while others actually provide you with gold bullion. Do your own research and find out what would suit you better and also look into the charges incurred upon buying and selling. Each trading house has their own percentage level of charges…. Get your investment money’s worth by trading with the lowest in charges….but be wary of the security level as well.

Take a look at this chart — Gold & The Dollar — (this chart is borrowed) and you will notice the movement of gold and USD is in the opposite directions. This is another guide for you to consider if you so decide to trade in gold.

Have you heard of this term “Old is Gold”? When human grows old, their functions slowed, their values are compromised, their memories waned and their usefulness may be reduced tremendously. Then the term “old is gold” had been coined to add value to aging people. Gold then became the measuring tool. Why GOLD? As everyone knows, gold is an unfading metal of great and undiminishing value.

With that in mind, shall we say that “Gold” is a valuable metal sort after by all. In other words we can summarise that “Gold” has value. Lets take a look at how much the value of gold has been moving from year 2003 till current:

1. 2003 - Gold at $382 dropped to $319 (-16%)
2. 2004 - Gold at $425 dropped to $375 (-13%)
3. 2005 - Gold at $536 dropped to $489 (-9%)
4. 2006 - Gold at $725 dropped to $560 (-22%)
5. 2007 - Gold at $841 dropped to $778 (-8%)
6. 2008 – Gold hit $1002 on Mar 17 then dropped to $786 on Aug 15 (-21.5%)

If you look at the above trend, you will see the fluctuated percentage is highest at 22% in a year and this year, gold has hit top value at $1002 per oz and has dropped back to $786 on 15 August, a reduction of 21.5%. Question is …. Is it at its lowest? Also, is it time to invest in gold yet?

Lets take a look at gold price compared to oil price…. Is there a trend for us to follow?

Alright now, I have done a simple research and a true to life comparison, now you are the one to decide whether its gold you want to invest in and if yes, is it now that you want to go into gold….. the decision is yours to make and the money is yours to earn.

Happy Gold Hunting!!

• Dare I invest further?
• If I dare, what shall I invest in?
• Do I invest in gold, stock, share, bond, trust fund or commodities?
• If recession is settling in, how long will it last?
• Can inflation kill the economy?
• What is affected, who will be affected?
• What is the domino effect?
• Fuel hike …. affects daily commodities …. affects interest rate

Don’t even bother to think that anyone can give you a perfect answer; not even God.

For the right answers, search within, you should know yourself well and you just need to re-ask yourself some of these questions:-

• What is my risk factor?
• Is it worth all the stress you are getting?
• Do you want to go on taking the risk?
• Can you afford to invest long term?
• How is your “gut” feeling right now?
• How much profit shall I settle for?
• How much loss (percentage and money wise) am I willing to take?

Frankly, investing is very personal. You and only you will be able to give you good advice. Use your logic.

Whatever decisions you made or whatever action you had already taken; I am sure by now you would have been wiser but will not have ended up much richer or happier.  Not now, not yet.

Time is still the essence.  Whatever actions or non-actions by you, you will still have to bide by time to see substantial gains. It is still important to go on fundamentals and stick by your decision, your very own judgment, experience and research on facts and figures.

Avoid making hasty decisions and going on a panic selling, buying or switching.  Any “Wild Goose Chase” on your part will only hurt your pocket and give you unnecessary stress.  This is the time to use your head not your heart.