rightcoastconservative

Once, Dubai World has a motto saying: “The sun never sets on Dubai World”. The state-backed group was the mastermind of world’s famous 7-star hotel, incredible man-made Palm Island, and world’s tallest building – The Burj. By utilizing the oil wealth, Dubai had diversified into property and tourism since 2001. Property prices had gone up several folds – in this desert. Foreign workers are several times more than their own population. It was doing very well until overspending sets fire on its huge debts. With up to $80 billions of debts due end of 2009, Dubai is scratching its heads very hard now. This was all started a year ago when the global economic downturn ended the sizzling hot property boom. Dubai was empty pockets after their oil money was drained by collapsing real estate prices and over-ambitious development plans, which sparked panic selling across the world on fears of, prolong global recession. HSBC and Standard Charted Bank were believes to be the biggest financier to Dub...

Recently, I have more time to walk around and seek for others' opinions regarding their view on "whether recession was end?". After fooling around, I'm proud to make a conclusion: " 50% YES , 50% NO " (Real conclusion: NO conclusion at all). Haiz... Then, I'm frustrated and came out with my own conclusion. However, my conclusion depends on the following 5 indicators: An improvement in the Unemployment Rate - 1st Sign – Corporate silence, which means no more job-cut announcement - 2nd Sign – Companies might start hiring again (slowly) More stable home prices - Housing prices had fallen for 2 years now, 20% worldwide - Once prices stabilize, buyers will stop worrying and bargain-hunting activities will pick-up slowly again Consumer confidence rebound - When corporate silence, housing and stock market will turn around - People feel more secure about their jobs and income, and will start to spend/consume again . A less volatile stock market - When corporate ...

Credit Card - Life of Banks The most talk-about topic of the boring 2010 Budget is the Credit Card's Service Tax. Rm50 for principal and Rm25 for every Supplemental card. I believe almost every qualified person on the street owned at least one card. And, many of us own more than what our purse can accommodate. If this new policy is to be inforced starting next year, what's the impact? Banks: CC is a new income source for banks. If we took the interest off the picture, I think it's fair enough that CC makes consumers more convenient, and banks charge merchants for using their credit service. For those banks which are promoting their CC heavily sure would suffer a massive blow. NO new card application + Card cancellation = Problems Cardholders: For sure, actions will be taken to cancel as many cards as possible. Unused cards sure not a problem, but how about those with installments? Congrats, you are forced to continue and pay Rm50 extra. How about those who still have CC deb...

Right after the worst bear-run of the century, 2009 seems to be one of the best year in history of Stock Market. Although unexpected, the bull rally almost unstoppable yet. Will it last? Or, when would it last? W, V or L shape recovery is a hot topic among investment community. Anyway, all of this is depending on the basic fundamentals of the economies. the current bull-run is started just because of the low-base effect in terms of pricing. When stock prices are so low after 2008, many people became Warren Buffet - with no fundamental checks. They bought because of the stock prices only. And, they make some profit though. Not a bad investment, if they are lucky as far as I concerned. after the first phase of recovery, the second phase is earning potential. This is the phase where we must go back to the fundamentals of a company. Earnings growth is what will drive the share prices higher after the first phase. This is why share market traded range-bound now (Oct 09). What would excite t...

Hurray!!! Even though economic crisis is still following us closely, banks are willing to offers higher Fixed Deposit (FD) rate. Sounds good? However, let us look at this "exciting" offers first before making any decisions. Normally, banks are offering enhanced returns for those who also buy unit trusts or insurance products. They bundle these products, in order to give consumers special FD rates. But, is that your cup of tea? YES, if you: need to buy an insurance and have extra money to put into FD need to invest into unit trust and have extra money to put into FD NO, if you: want to buy insurance only want to invest into unit trust only do not want to lock-in your cash in FD Do take note on the terms set by banks, such as the ratio of FD:UT / FD:Insurance. For instance, the insurance products bundled are higher in premiums. While for Unit Trust, ratio is directly affecting your return. For example, RM100k are divided into 4:1 ; RM80k FD and RM20k UT Enhanced FD 3% and UT 10...

Many people mistakenly linking investment and insurance. Investing through an insurance policy is very popular nowadays. However, this could turned out to be a costly wrong move because: there must be insurance charges (many agents always say FREE coverage), that's why the return will be based on % of sum assured. there must be years of locking period (many agents say this is for long-term), where you can't get back your "invested amount" if withdrawn prematurely. there is NO double-digit annual return ever. If yes, ask whether is it Guarantee? Written? If still yes, let me know and I will sign-up immediately. So, be careful when you are dealing with these "financial providers". Insurance is a long-term thing. If you found out late, you will be penalised with $$$ or forced to continue for years. *Hint: Insurance is for protection or long-term financial planning only. Not for investment.

After Lehman Brothers' collapsing 1 year anniversary, did you noticing the urgent needs to be financially literate? If no, you must start now. And if yes, what have you done for the past 1 year on it? Financial products (insurance, investment, loans, credit cards) are becoming more complicated nowadays, if we are not well-verse with it, how? A very good example have been shown by the toxic-bonds thrown by Lehman Brothers. If we are financially literate, we will be able to: make effective personal decision avoid financial breakups because of money improve our mental and emotional well-being know our own financial status, and not blaming others asking the right questions and getting accurate answers increase our ability to understand sophisticated products mitigate the investment market risks avoiding scams and toxic investment products differentiate between network marketing and pyramid schemes Sometimes, it's not necessary to fall into a hole, for the sake of knowing how deep t...