Posted by joetay > 2017-07-18 05:35 | Report Abuse

@calvintan,

simple and well-written article.

for me, i believe in opportunities during times of danger and fortune favors the brave.

i cannot predict with accuracy when the next economic adjustment will come so i trade within my limits while waiting. it is better to do something than nothing at all.

Posted by Edwardong53 > 2017-07-18 07:56 | Report Abuse

Nice article, Calvin. Thanks for your sharing

Posted by ks55 > 2017-07-18 09:02 | Report Abuse

Talk is easy.
In 1998, interest went up to 21 %.
Put your money in Affin Bank got FD 14.5%.
To buy auction houses need cash and no bank willing to lend money.

Everybody was scared to put money in Malaysian banks.
They took out money and deposited next door with Singaporean OCBC or UOB, or Citi Bank, or SCB if any around.

In modern days, only 2009 US financial crisis can beat the fear experienced by Malaysian in 1998.
And that only happened in US when Wall Street problems started to spread to the high streets.

Hopefully Malaysia will not have to face with this type of crisis again............

Posted by 3iii > 2017-07-18 09:05 | Report Abuse

Nice article, Calvin. You have posted many articles on bargains and asking people to invest. Now you drum fear of a falling market into them. Are you bearish today?

Posted by Beza > 2017-07-18 09:06 | Report Abuse

Sharing more Calvin about your situation that time. Not just your 3 friends. Tq.

Posted by gohkimhock > 2017-07-18 09:13 | Report Abuse

The best article written by Calvin so far. Stocks without fundamental will be the hardest hit.

Posted by Alex Foo > 2017-07-18 09:17 | Report Abuse

thk u calvin. I'm a newbie never seen the 1997, even 2008 subprime crisis. I'm only on the stock market since Apr 2017 and I'm too naive to believe that stock market can go up forever.

Please keep posting, especially those experiences you had, so you can educate the young ones.

Posted by firehawk > 2017-07-18 09:17 | Report Abuse

Hope the opportunity comes again ... :)

Posted by calvintaneng > 2017-07-18 09:20 | Report Abuse

Thank very much guys.
Really appreciate your feedback.

Will share more later.

Anyone who has gone through that period please come out and contribute.

Don't be shy.

Going for breakfast now.

Posted by potenza10 > 2017-07-18 09:46 | Report Abuse

nice article.

Posted by ks55 > 2017-07-18 09:49 | Report Abuse

firehawk -- I believe you did not go through that period.
Can you imagine suddenly suddenly your housing loan interest went up to 21%?
What about you seeing your friends, your relatives or even your parents suddenly out of job?

If you were study overseas, and suddenly your father says come home now, your are not receiving any financial support for indefinite period, and you are to work helping support your family's daily expenses?

How many people lost their jobs?
How many families were ruined during that period?
How many went bankrupt, not due to their fault but simply could not afford to pay mortgages?
How many could not finish their education overseas even they just have one more term to go?

We must pray hard this type of crisis never happen in Malaysia again........

Posted by ks55 > 2017-07-18 10:00 | Report Abuse

Thinking over it, still make me scared.
No doubt I recovered and making from the market after that, I consider myself fortunate for not losing my job, and having sizable FD (relative to my market exposure) at that time to recoup earlier losses during the height of the crisis.

Seeing too many unfortunate incidences happened before your own eyes is really a very very bad experience that forever remembered.

It has been the reason why I still keep big portion in FD, and Reits.
Share market in that type of situation can wipe out 90% of the value, regardless is a blue-blue chips or otherwise.

Posted by firehawk > 2017-07-18 11:07 | Report Abuse

ks55 -- Ha Ha, I give a short short answer, I went through!

The storm really hurt me was when Diam was the Finance minister, if i'm not wrong, the index then ~1411 ... days before collapse the index swing triibly (+100 pts, by that time was considered severe). i think this one was prior to the 97/98, i'm not too sure. Since then, I learnt! :)

if i'm not wrong, 1n 2008 there was another (Obama as president, DJI swung +1000pts) , may be a minor one, I grabbed the opportunity ;)

Posted by firehawk > 2017-07-18 11:13 | Report Abuse

i put the posting like that, is to make the forum a little more fun ... not more than that :)

Posted by ks55 > 2017-07-18 11:42 | Report Abuse

You are wrong.
Anwar was the Finance Minister.
On the day he was removed, KLCI came down to 276, a drop of 78 points.
During that period, everyday 20 to 30 counters came limit down.
Ekran came limit down 7 times straight, from about 6.50 straight down to 67 sen.

People using margin all went bankrupt.........

Posted by ks55 > 2017-07-18 11:43 | Report Abuse

Just wonder how old were you then.........

Posted by firehawk > 2017-07-18 11:47 | Report Abuse

that's why I said, the storm really hurt me was prior to this one (97/98) ...

the "Ekran" for that time was "Union Paper", dropped from +50.00 to ???
finally delisted?

Posted by ks55 > 2017-07-18 11:51 | Report Abuse

Are you sure?
Union Paper was by John Soh and Ibrahim, same as Phoenix, Omega etc.
Ekran was by Ting Pek Khiing. Almost immediately after rights issue came limit down 7 times straight.
That killed Ting Pek Khiing.

Posted by Ooi Teik Bee > 2017-07-18 12:10 | Report Abuse

Dear firehawk,

The storm really hurt me was when Diam was the Finance minister, if i'm not wrong, the index then ~1411 ... days before collapse the index swing triibly (+100 pts, by that time was considered severe). i think this one was prior to the 97/98, i'm not too sure. Since then, I learnt! :)

Ans : This scenario happened at the end of 1993. Daim is not the Finance Minister, he is just an investor. He called investors to get out of market because KLSE is overvalued. It is the start of downtrend after this call, the index dropped 100 points within the same day. He was blamed for this drop because of his call.

You are not wrong, you misquote only.

Thank you.
Ooi

Posted by Alex Foo > 2017-07-18 13:28 | Report Abuse

thk u for sharing past experiences....yes pls share more... I'm shocked to hear about limit down 7 times, and 21% interest rate

Posted by firehawk > 2017-07-18 14:56 | Report Abuse

HI OTB, I think you provide a more accurate picture, many ppl blamed Diam ... i remember the next day, Dr.M said something, and the Index swung back and later went down with no return .... in a securities firm I heard a woman said,"He wants to give chance to you all to flee, but you all don't want to run ...." :)

Posted by calvintaneng > 2017-07-18 15:03 | Report Abuse

Very good gentlemen,

Please share more.

I now busy in booming Iskandar.

Will post more later.

Posted by VenFx > 2017-07-18 15:14 | Report Abuse

Calvin bro, this is many hurt stories for some..
but the lessons may prevail them walk a broader pathway i believe.

Good job on this, Calvin .

Posted by firehawk > 2017-07-18 15:34 | Report Abuse

ks55, I don't know who owned Union Papaer, nor I ever bot it ... it was sold >50.00 was definitely true, the last price i saw (could be 1 yr after the crisis) was 12.++ and then disappeared, when it was delisted?

The political stock + star (always on the 1st. place of active list) was Renong! Was it later metamorphosed to UEM engineering and then UEM Land (now)?

Posted by joetay > 2017-07-18 17:48 | Report Abuse

@firehawk,

yup, renong is merged into the uem group.

Posted by gohkimhock > 2017-07-18 17:50 | Report Abuse

i got pwned by Bescorp during the 1997 crisis.

Posted by 3iii > 2017-07-18 20:14 | Report Abuse

Many who were killed in the 1997/1998 stock market crash dare not venture into the stock market again.

Posted by calvintaneng > 2017-07-18 21:19 | Report Abuse

Good evening.

Today is a restfully busy day in Iskandar.

Yes, 3iii is correct.

Mr> N, Mr> Ho & Mr. Lee of Lee Motor, kl (not the Mr. Lee of Sitiawan) do not want to talk about shares today.

Just like those people in Holland.

After being burnt by Tulip Mania the people of Netherlands totally abhor any form of mania or speculation for over 300 hundred years since Tulip mania
https://en.wikipedia.org/wiki/Tulip_mania

Posted by calvintaneng > 2017-07-18 21:26 | Report Abuse

Ooi Teik Bee Dear firehawk,

The storm really hurt me was when Diam was the Finance minister, if i'm not wrong, the index then ~1411 ... days before collapse the index swing triibly (+100 pts, by that time was considered severe). i think this one was prior to the 97/98, i'm not too sure. Since then, I learnt! :)

Ans : This scenario happened at the end of 1993. Daim is not the Finance Minister, he is just an investor. He called investors to get out of market because KLSE is overvalued. It is the start of downtrend after this call, the index dropped 100 points within the same day. He was blamed for this drop because of his call.

You are not wrong, you misquote only.

Thank you.
Ooi
18/07/2017 12:10

Yes Sifu Ooi Teik Bee,

Dr Mahathir has been warning and warning about the Stock Market being unsustainable but no body listened to Dr. M

Then Daim Zainuddin came out with his warning. He said that Market is now too dangerous or something like that. And he said that he only play the market for coffee money only.

After Diam speech Market collapsed!

So they nicknamed him " Diam Daim"

Posted by calvintaneng > 2017-07-18 21:32 | Report Abuse

VenFx Calvin bro, this is many hurt stories for some..
but the lessons may prevail them walk a broader pathway i believe.

Good job on this, Calvin .
18/07/2017 15:14

Yes not only hurt.

I saw families broke up.

Mr. N of Batu Pahat lost Rm5 millions & ran away from loan sharks.

He lived like a fugitive at the Thai Border smuggling Thai Rice to Malaysia & smuggling petrol from Malaysia to Thailand.

Once I sat in his Rm500,000 high end Merc Benzin Batu Pahat. I also drove his high power BMw 525i on PLUS HIGHWAY once. I also saw his 2 Bungalow Lands in Taman Soga - the highest peak of Batu Pahat

In the end Mr. N lost everything

Posted by calvintaneng > 2017-07-18 21:41 | Report Abuse

ks55 You are wrong.
Anwar was the Finance Minister.
On the day he was removed, KLCI came down to 276, a drop of 78 points.
During that period, everyday 20 to 30 counters came limit down.
Ekran came limit down 7 times straight, from about 6.50 straight down to 67 sen.

People using margin all went bankrupt.........
18/07/2017 11:42

I once visited Sarawak. One evening the driver drove my wife and myself to the seaside in Santubong area.

I was surprised to see the entire stretch lighted up with bright street lights.

They said Ting Pek Khiing built it with his own money.

So in the collapse of Bakun & Ekran at least Ting has used some of his cash for a good purpose in Santubong

Posted by bgt9963 > 2017-07-18 21:42 | Report Abuse

At that time,some very good goreng stock like Autoways,aokam tin,jasatera,general soil,comsa and many more.....

Posted by VenFx > 2017-07-18 21:44 | Report Abuse

I has a fren who throw the dart blindly by juz listening hus Remisier in Labuan , that cause him sold off his Golden triangle land in Kuching, Sandakan & Hong Kong. Else he supposed to be a billionaire by now.

He told me , he was too scared to cut lost... while his Labuan Remisier keep pumping the idea of Gravity that ' A Ping pong ball will bounce higher every time it hit the floor '
That is how he lost everything by collaborate his assets to bank in order to top up his margin account .

Deep down my hard, his Remisier has totally misleading him .

Posted by calvintaneng > 2017-07-18 21:44 | Report Abuse

And yes,

During the bullrun in year 1993 every week a dozen or so counters went LIMIT UP.

So in the aftermath of the collapse every week a dozen or more gone LIMIT DOWN

Posted by 3iii > 2017-07-18 21:48 | Report Abuse

How to survive a market crash? (1) You get killed if you are 100% in stocks just before the crash. (2) Always invest as if the market is going to crash. (3) Will you be alright financially if the market were to crash 50% tomorrow? Essentially, you should know your investment objectives, risk tolerance and your investing time horizon. Your asset allocation to stocks should be also based on your financial capacity. You should only invest in stocks with money that you do not need for the next 5 or more years. If you cannot sleep well because you are over-exposed to stocks, sell them down to your sleeping point (Rothschild). Of course, don't use leverage (margins), you will be killed by these in a severe bear market.

Posted by VenFx > 2017-07-18 21:52 | Report Abuse

Calvin,
Ting pek king
Is Dr. M's proxy , same with Lim leong sik .
The second counter I bought is PWE with my saving at $6800 per lot, I'm cutting lost too late at $780 per lot ... and bring my parent eat at restaurant .
Before it was suspended and after few years Pansar come in for the RTO...
Pwe only traded at $200 per lot .

Posted by musangfoxking > 2017-07-18 21:54 | Report Abuse

remember Repco? more than 100!!! then bust!!!

Posted by leno > 2017-07-18 21:55 | Report Abuse

Tumpang lalu ..... KAKAKAKAKAKAKAK ... sekian, terima kasih.

Posted by calvintaneng > 2017-07-18 22:00 | Report Abuse

Lk036 Bro Calvin, what we learn fr here? It is better we plan for the future. Should we get out fr market now n wait fr for market crash/opportunity. Which sector or stock we should eying first?
18/07/2017 21:38

Since 1997/8 I have always lived with a view that another one might hit again.

I am really thankful to God Almighty for sending Alfred Ong to warn me in 1997 to get out

In year 1999 i visited USA and saw subprime lending in California, especially in San Francisco, Los Angeles, Las Vegas & St Jose & in Nevada.

And George Soros warned in year 2014 that in 3 years the subprime loans will cause another crisis. So again I got out unscathed.

Question now is,

"Will a similar crisis hit us again? Today Dr. Marc Faber, Jim Rogers, George Soros, James Rickards and others are predicting another crash

It's really hard to tell now.

Before they were no QE1, QE2 & QE3

For now they have discovered the antidote to market collapse by massive amount of printed fiat money.

They called Ben Bernanke helicopter Ben for being willing to print endless amount of monies and flood the system should another crisis erupt

So it could be the other way - hyper inflation with the destruction of the value of paper currencies.

So I don"t think we should totally get out but go defensive

Dr Marc already advocated diversifying into 4 groups:

1) stocks & shares
2) bonds
3) real estate
4) cash or gold

Posted by VenFx > 2017-07-18 22:02 | Report Abuse

Tiong Song Seng
Is the only buaya that can cheat the European funds money.

He is the master of con artist .
I doubt he might rish his life if going back to Sabah.
Need not too, he is quite welcone in China after donate few millions.

Aokam did produce best quality of plywood & veneer. .. in Asia.
Their production line is the art of the state during that time.

Posted by VenFx > 2017-07-18 22:05 | Report Abuse

Market Capital never die,
It live today, and shall life again
Juz in different form ...

Posted by Ooi Teik Bee > 2017-07-18 22:13 | Report Abuse

Stock market may crash in every 10 years or 20 years, no one knows when the market crash will happen. If anyone knows it, he must be a god.

Everyone who invest in stock market must know how to deal with it when the actual crash happens.

To me, like Chinese saying, "every danger may be an opportunity to get rich".

Everyone must get ready if there is any crash. The most important is to make full use of the crash and maximise it.

Please be informed that market will recover fast after any crash like 1998.

Thank you.
Ooi

Posted by Larrytrader > 2017-07-18 22:14 | Report Abuse

probably crazy this year

Posted by calvintaneng > 2017-07-18 22:17 | Report Abuse

VenFx Tiong Song Seng
Is the only buaya that can cheat the European funds money.

He is the master of con artist .
I doubt he might rish his life if going back to Sabah.
Need not too, he is quite welcone in China after donate few millions.

Aokam did produce best quality of plywood & veneer. .. in Asia.
Their production line is the art of the state during that time.
18/07/2017 22:02

AOKAM?

IN YEAR 1997 I JUST SOLD BJ CAPITAL AT RM3.00 (8,000 SHARES) TO CASH OUT RM24,000

NEXT DAY BJ CAPITAL JUMPED TO RM3.60 (aiyoo if only i waited one more day i would have made another rm4,800)

THEN I SOLD AOKAM AT RM5.00 (5,000 SHARES) TO CASH OUT RM25,000

AND JUST ONE DAY AFTER SELLING AOKAM AT RM5.00 - AOKAM JUMPED TO RM5.50 (if I waited i would get another Rm2,500)

IT WAS SO PAINFUL.

THEN I MET ALRED ONE.

I SAID, "WE SHOULD NEVER SELL ANY SHARES. BECAUSE AFTER SELLING PRICES STILL MOVE UP AND CAUSE ME HEART SICK" WE ARE IN A BULL RUN NOW

ALFRED REPLIED, "WE NEED PEOPLE LIKE YOU" WE ARE NOT IN A BULL RUN. WE ARE IN A BULL FART! I JUST SOLD HALF OF ALL MY SHARES. THE INDEX WILL COLLAPSE FROM 1,332 POINTS TO 800 POINTS!

WOW! I WAS TOTALLY BULLISH THEN. AND ALFRED WAS TOTALLY BEARISH. HOW COULD KLSE DROP FROM 1,332 POINTS TO 800 POINTS? IMPOSSIBLE, I THOUGHT.

NEXT DAY I SAW ALL COUNTERS READ BUT ONE - TA - SO I TOLD MY REMISIER TO SELL OFF TA THAT DAY.

ALFRED SAID, YESTERDAY I SOLD HALF MY SHARES. TODAY I SOLD ALL THE OTHER HALF. AND HE ALSO TOLD HIS WIFE FROM OMEGA SECURITIES TO SELL ALL.

ALFRED GAVE ME A CHUN CHUN WARNING AS I FOLLOWED HIM TO GET OUT.

ANDREW HAS AN MBA AND MIGRATED TO AUSTRALIA IN THE LATE 90S.

EVERY TIME ANDREW VISITS ME IN SINGAPORE I NEVER FAIL TO TREAT HIM TO MEALS

Posted by Alex Foo > 2017-07-18 22:18 | Report Abuse

@Lk036

im actually eyeing on bitcoin crash,

or crytocurrency crash.

Posted by calvintaneng > 2017-07-18 22:24 | Report Abuse

Lk036 How about hwa tai? The biggest up n down stock.
18/07/2017 21:45

IN THE EARLY 1990S I USED TO SUPPLY USED CARS TO MR. N OF BATU PAHAT

AND MR. N WAS A DIE HARD STOCK PUNTER.

HE GOT A DIRECT ONLINE TRADING TERMINAL WITH LIVE STOCK QUOTES IN HIS USED CAR OFFICE IN BATU PAHAT. HE SAID HE PAID RM15,000 FOR THE SERVICE.

THEN MR. N TOLD ME ABOUT HWA TAI BISCUIT FACTORY JUST 20 MINUTES AWAY.

CURIOUS I DROVE TO SEE HWATAI FACTORY. IT WAS A DILAPIDATED DERELICT BUILDING NOT WORTH EVEN RM200,000 I THINK. AND I WAS PUZZLED THAT ONE SHARE OF HWATAI WAS WORTH RM200 THEN. REALLY AMAZING. MARKET WAS REALLY MAD THEN

Posted by Alex Foo > 2017-07-18 22:27 | Report Abuse

thx for sharing....pls share more~~

Posted by Alex Foo > 2017-07-18 22:28 | Report Abuse

as of now im actually around 80% invested in stock. With the rest in liquid and hedge (i buy hard silver). I plan to sell 1/5 of stock if the crash comes.....

but looks like i can actually sell all stocks b4 crash (but that's impossible to time).....

they say cash in king in deep bear market, i think it's real judging from many stories here.....cars become so cheap, so does property....and stocks most importantly....

if nestle go down to RM12, i sure sapu~~

Posted by Alex Foo > 2017-07-18 22:29 | Report Abuse

judging from your experiences....i assume you're at least 30 around 1997....so 20 years d....

all experienced ppl here at least 50....gg.....i can become your son d....please take me as your son and teach haha

Posted by calvintaneng > 2017-07-18 22:30 | Report Abuse

musangfoxking remember Repco? more than 100!!! then bust!!!
18/07/2017 21:54

yes i remember Repco

One day my friend Randy Tay went to Kepong to see some company cars under receiver sale.

When i asked him which company?

He said. "Repco"

My friend Randy does not believe in share investing.

His used car company is called "ranko" - HAHA! not repco