Chill! So Bank Negara make a surprising move! Many caught with their pants down! BN has no choice! Maintain interest rate and see ringgit drop like no tomorrow! So now, everybody force to increase interest rate as the dumbass US is fighting so called inflation! Like i said, you tackle the prime cause not trying to put some salt on the wound! This interest rate hike will be new normal in ever weirdo fiscal short sightedness! All depends on the administrator of the day!
As malaysians already emptied their EPF and EPF is now in weak position, don't expect us to go through coming recession in style like Singapore! We won't! Things going to be super rough ahead! For me, i am preparing bullets for coming property crash!
@ahbah: How can we prepare ourselves to face recession ?
BLee: A very good question. The answer could be invest in recession proof assets such as: -Education or Skill if still young.. -Properties in high growth areas as location, location, location is very important. Most properties are already time tested as shown by double or very much more increases in trading price over the years. -A basket of foreign currency, SGD is a good choice. Bear in mind recession could be worldwide affecting all currencies due to Pandemic, Global warming affecting crop shortages and Countries Conflict. -Invest in some stocks at a very 'low price' undervalue as the downside will be very limited and with high NTA. Switch stocks when necessary.. Just a few suggestions for discussion purposes only as I am not an Economist.
BLee: A very good question. The answer could be invest in recession proof assets such as: =======
very good attempt. a true recession, all listed assets will go down. cash is king until inflation eats up all its purchasing power. so, no where to hide. The only hiding place is skills, education and be the best . When people needs u , u will do well.
recession also good. the rich become poor, the poor gets a chance to be next gen rich.
Don't keep US dollar guys! Once hit that sweet spot of 1929, it's totally worthless! Thank Biden for his blunders! Within a year in his administration, printed trillions of paper money and spend on nothing! Don't know when this 1929 will happen but once it does, we all will be back to stone age! I am considering keeping gold instead! Do you guys know where to buy those genuine gold coins!
Sky! All the signs are too obvious! It's just matter of time! Definitely before 2024! And we will see repeat of 1929, something we dare not think of! This coming recession will be similar to great depression really! The root cause is the worthless dollar!
Investors typically flock to fixed-income investments (such as bonds) or dividend-yielding investments (such as dividend stocks) during recessions because they offer routine cash payments.
Dividend stocks are shares of a company that splits a portion of its profit with all its shareholders based on the number of shares each investor owns. Investing in companies with a strong track record of paying — and increasing — dividends can lead to stable cash flow even during recessions. Another option is to invest in dividend ETFs, which comprise companies known for routinely paying strong dividends.
“Even if the value of your stock is down because of the conditions, the reinvested dividends lower the volatility.” Marguerita Cheng, CFP And while these payments can be taken out as cash and used as income, there’s another factor that makes dividends more appealing during times of volatility, according to Marguerita Cheng, a CFP and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland.
“The benefit of investing in dividend-paying stocks, mutual funds or ETFs is that the dividends can be reinvested. Even if the value of your stock is down because of the conditions, the reinvested dividends lower the volatility,” Cheng explains. “Let’s say the stock market is down 10%, but that stock you have pays a dividend of 3%. If that gets reinvested, you don’t experience as much downside.”
When searching for dividend-paying stocks, it’s important to note that yield shouldn’t be the biggest determining factor, as the highest yields tend to come with additional risk. Rather, look for consistency in paying or increasing dividends, which is indicative of good corporate governance.
Bank Negara just made a fire fighting solution. They raised interest rate at the wrong time. It will increase inflation and unemployment. More companies to shutdown except bumi companies which gets divine help though not profitable. Property and construction will take a beating. More bankrupts will be created.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....