The Employees Provident Fund or EPF is Malaysia's statutory solution for retirement savings. Every salaried employee and his/her employer is mandated by law to contribute into this fund. The fund takes the contributions and invests generally in equities, fixed income, and real estate. These investments are made both within and outside of Malaysia. At the… Continue reading Why EPF’s 2024 Report Signals Lower Returns
US Tariffs and Market Meltdown
US vs the Rest of the World On April 2, Donald Trump unexpectedly announced high tariffs on almost all countries based on a flawed understanding of maths and economics. Compounding the bad news is the fact that the tariffs were to be effective in just a few days. This translates to an immediate cost spike… Continue reading US Tariffs and Market Meltdown
The Problem with EPF or ASB Dividends
Every year Malaysians with savings in EPF or ASB look forward to the dividends announced and they usually do not disappoint. Recently, PNB the fund manager for ASB, announced a 5.75 sen dividend, which is equivalent to a 5.75% dividend since ASB is a special type of fund where the price per share is always… Continue reading The Problem with EPF or ASB Dividends
Understanding the Power of Compounding Growth
As kids we learn that doubling any small number continuously will eventually lead to an astronomical number. However even as adults, it can be difficult to visualize just how quickly a compounding growth is. Take for instance something that grows 10% a year. Each year, it gets just 10% bigger than the year before. By… Continue reading Understanding the Power of Compounding Growth
Wrapping up 2024
2024 continues the amazing equities run in the US. After gaining over 20% in 2023, the US S&P 500 gained another 25% in 2024. Big tech stocks led the gains. Nvidia surged almost 180% and became the latest $3 trillion company, fueled by the generative AI boom. Apple, an already $3 trillion company before 2024,… Continue reading Wrapping up 2024
EPF’s Negative Surplus and Reserves
EPF of Malaysia just released its 2023 Annual Report on 30 October 2024. It is astounding that it took such a prominent entity in Malaysia almost a year to release this report. I guess most Malaysians do not read the annual report of their retirement savings fund. Otherwise they may be wondering what's the big… Continue reading EPF’s Negative Surplus and Reserves
Currency Exchange Rates
The Malaysian Ringgit began strengthening significantly against the US Dollar from around mid-July this year. It went from RM 4.67 for 1 US Dollar then to RM 4.33 for 1 US Dollar today. This means if you hold Malaysian assets, the asset value has increased by 7% in about 90 days when it is valued… Continue reading Currency Exchange Rates
Looking back at 2023
2023 has been a welcoming year for the world of investments, particular for equities. Strong 2023 for the US The S&P 500 index is up more than 20% this year, erasing almost all the losses from 2022. What started as a rally mainly with the big tech stocks early in the first half of the… Continue reading Looking back at 2023
Should I Buy or Rent?
Back in 2018 I wrote about owning a home as part of one's asset allocation strategy. A home is a unique asset because you can simultaneously enjoy staying in it while watch its value go up over time if it is in a good location. When you have retired, an unencumbered home with a paid… Continue reading Should I Buy or Rent?
Is the Share Price Cheap or Expensive?
It depends on who you ask. What is Share Price? Firstly, let's clarify what the share price is. One of the two ways a company gets money for its business is by selling pieces of itself to investors. Each piece is called a share or a stock in the company. The company decides by itself,… Continue reading Is the Share Price Cheap or Expensive?
The Finance Durian 