A lot of people been asking me regarding forex investment offered by bank.
So, I believe some people has no financial background. They need advises on what to invest, where and when. This post, let me chip in some ideas for you. First thing first, this is not a post to encourage you to do any forex or financial investment. It is very risky when you do not know what you are venturing into. That is why I write this for educational purposes.
Some history, before the end of year 2015, I been telling 2 possible scenarios to people.
1. If USDMYR break above 4.8, we may see it advance to 6.0 at least in year 2016.
2. If USDMYR cannot break above 4.8, it will use the closing price of year 2015 to be the foundation of year 2016 with plus minus of 15% range.
So, with good leadership. Our MYR manage to stay below 4.8 and close the year 2015 with 4.3. Scenario 2 is apply for now. Which it will trade within a range of plus minus 15% from 4.3, that is around 3.65 – 4.96. Do not take this range as very solid or sure-answer if you are going to trade any financial instruments. I could be wrong and I am just another nobody.
Where to invest?
A lot of people asking me the same questions. This has many answer. The simplest answer(s) I can give you without months of lectures are.
1. Buy a foreign currency that is as weak as MYR and offer better fundamental economy, politics and confidence compare to Malaysia for example Australian dollar.
2. Keep your money in USD.
3. Buy property or land.
Oh yes, why I never mention precious metals like Gold and Silver and etc… Frankly, these are commodities. It requires attention to trade it. You can’t hold it forever because the price up and down frequently. Currencies fluctuate too, but in a more logical way and pace. If you are looking an asset class that guarantee appreciation over a long run. Please go for option 3.
Be it any investments, you must know what you are investing into. Option 3, buy property or land is safe but if you bought the wrong location or over value deal… then you are probably screwed. It happen to anything and everything in life which involve Buy and Sell, be a smart buyer/consumer, ok?
When to invest?
As long as you found an opportunity, you go for it! Right? 🙂
People tell me Gold is a good buy, it is moving up from 1100 to 1300 now. Many analysts forecast it will hit 1500 by year end! So, many of my friends bought some golds. Friends, sorry to say, the opportunity WAS there and no more. If you ask me, should you be buying gold now? Not, since it has already advances. I will wait for the opportunity and the price I want, NOT the price some Analyst or financial planner convince you. Did you see the differences on knowing what you are buying rather than listen to experts?
Should I change my MYR to USD now or later? Like I say, if you see an opportunity to do it. Then you go for it. There is no definite answer on when but there is supply and demand. Whenever you feel is right to let go MYR and get in some USD or AUD or SGD, go for it. Like buying a redwine, some see it is overprice, some say it will appreciate over the years. About the same for any investments, it is about your knowledge and willingness to trade on it.
The real question is… why MYR keep depreciating against USD or SGD? Hey people! That’s you!!! It is all what you have done. Not the government. You opt to get other’s countries currency rather than holding our MYR. You invest oversea instead of Malaysia. So, you are one of the people who helped to lower the value of MYR. Get it right, since you do not want MYR, who will want it? Of course, the cheaper you offer, the more buyers will surface. So, as long as you keep thinking to offload your MYR quicker at cheaper price, we will never see a good future. Also, I cannot say BNM (Bank Negara Malaysia) did a good job in defending our MYR but again, the responsibility is shared. You did what you think beneficial to yourself. The earlier group enjoy the fruits, the later group suffer the pain. Some gain some lose. Rules of the game.
That’s all for now. Leave a comment if this interest you or ask any questions.
**And yes, I purposely don’t answer should you be involve in the forex program offer by the legal financial entity. Seriously, re-read the last part of my post. First to strengthen the MYR then only I will look to investment else where.
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