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
Category: Uncategorized
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
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?
2022, It’s A Wrap
Today is the last day of 2022, a year that most in the investing community would treat with humility. After years of runaway gains and heady valuations in stocks, bonds, properties and digital coin prices, we've now been brought back to reality. As Warren Buffet famously said, "it's when the tide goes out that you… Continue reading 2022, It’s A Wrap
The Negative 10-Year Return of the KLCI
Source: Yahoo Finance The goal of investing is to generate long term returns that beats your personal inflation rate and achieve your financial goals in life. If you've put all your investments in the Malaysian stock market for the past 10 years, you would have soundly failed your goal. As of today November 26th 2022,… Continue reading The Negative 10-Year Return of the KLCI
Strategy for Slow Decline in Stock Prices
When facing recessions, stock prices can take a long a long time to decline to its lowest point. When the dot-com bubble burst in mid 2000, it took about 2 and a half years before the S&P 500 bottomed out. Similarly when the housing bubble burst at the end of 2007, it took a year… Continue reading Strategy for Slow Decline in Stock Prices
The Finance Durian 