Dear Tun,
You are right but guess there are other options to consider too.
In any investment there are risks involved but one must be smart about it.
The stock market is indeed a gamble most time, you win some you lose some.
The trick is to spread the risk about in a few options.
As an investor, we have 4 simple basic options ; Equities (shares), property, collectables or indeed cash-based investments.
However the value of cash base investments can be effected by inflation and falling interest rates, so you/me/we should seriously consider spreading the risk by investing some of the money in shares/property and to a much lesser degree/extent, in collectables.
The major benefit with these types of investments is the potential to gain capital growth that cash-based investments cannot provide-lah.
Cash-based investments does indeed has its advantage too i.e. it specify in advance the rate of interest. We can therefore, culculate the amount that is normally fixed throughout the period of the loan and is guaranteed, even if interest rates fall.
Furthermore, the capital will be protected against any sudden downward movements in the money markets, which could affect the value of other types of investments, such as shares and property.
The feeling of certainty can indeed be very reassuring to some of us.
Investors who buys assets base such as shares or property can also increase their wealth in one of the two ways - either from income from dividents or rent, or as a direct result of capital growth.
By contrast, cash cannot, by itself increase in value at most time, we have frequently seen its purchasing power be eaten away by inflation !.
Somehow, I still feel its kind of safe for investing within the local market but our local Politicians should stop being silly because it will effect the investment atmosphere in Malaysia.
We really need some rest with politiking and get into the real business of economic stability plus growth asap !.
Lets all, THINK Malaysian for our beautiful Malaysia !!!!!!,,,,,and the future for all of our children....YES please aaaik ?. ,,,,,,,,,,Darm it for God's sake !
