Investing is NOT Speculation

There is a difference between speculation and investing.   One distinction defined this by the length of time over which the investor expects to realise their investment; or to put it another way, how quickly one expects to make money.  Speculation is high-risk-get-rich-quick territory. Investing is managed risk over long periods of time where you can acquire wealth slowly.   [  I am an investor by nature, not a speculator.I am in it for the long haul, and having...

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The more debt you take on, the higher the risk

The higher the net gearing figure, the riskier the investment becomes.  This is basically because debt has to be paid back no matter what happens to your sales.  Costs are generally more fixed, whilst income for most businesses is variable and can fluctuate wildly.  For example, the manufacturer of high-end electronic consumer goods that is very heavily geared is likely to face a potentially serious problem in the event of a sudden economic downturn.  The debt, however, as a fixed cost, would remain. This...

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Saving for Chidren Education

Just want to start off with two paragraphs of some vital statistics Of the 41,573 public university enrolments this year, only 7,913 were Chinese Malaysians. Last year Chinese students made up 8,985 of a total enrolment of 38,549 and in 2011 around 9,457 of a total enrolment of 41,267, according to the Malaysian Chinese Association, or MCA, which is part of the Barisan coalition.  http://www.universityworldnews.com/article.php?story=20130717110401762 Datuk Dr. Mohd Nor Dalimin, Malaysian Examinations Council chairman announced...

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The Most Hated Bull Market Ever

Life has been challenging for the bears over the last four years. For the first few years of the recovery (2009-2010) when stocks vaulted +50%, supposedly we were still in a secular bear market. Back then the rally was merely dismissed as a dead-cat bounce or a short-term cyclical rally, within a longer-term secular bear market. Then, after an additional +50% move the commentary switched to, “Well, we’re just in a long-term trading range. The stock market hasn’t done a thing in a decade.” With major indexes now hitting all-time record highs, the...

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Chinese inflation – unreported retail

China’s inflation print for June at 2.7 percent, a four-month high, was higher than forecast, but part of the picture could be obfuscated by a lack of accounting for the ever-growing online retail sector. Gross domestic product figures have been consistently revised down this year from 8 percent to around 7.4 percent by July, with significant doubt over the reliability of official data. Some analysts forecast the more likely GDP print...

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