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2010-10-28

Dollar printing "out of control" !

I just read this news from Malaysia Insider Dollar printing ‘out of control’, says Chinese minister. This is no new, US had printing a lot of money since 2009 to safe US from crisis and now they use all this money change to Asia currency and buy Asia property. This had cost the property value go up sky high and most of Asia country already start block all this hot money in flow but Malaysia still welcome this hot money.
















The main reason Malaysia need this hot money are to support good GDP value in Malaysia. This hot money can be manipulate to show Malaysia economic is in good condition and share market going up and up. All this inflow of hot money will effect us when we want to buy property because strategy location property price is high.

The good news is as long as Malaysia welcome this hot money, FBM KLCI index sure will move higher just that we need to keep ours investment in short term because we did not know when this hot money will pull out, if they do it FBM KLCI will fall to ground zero. How deep it fall, I really no idea.

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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