2012 Ups and Downs

Before 2012, most people had predicted 2012 will be the tough year for global equities. US dollar may collapsed. Euro zone will break, Greek default, China slow down, property bubble etc.


However, this is not happening at all. Most governments had do their hard work to ensure they will continue to win their elections this year. Greek government debt deal will passed. Governments will spend within it means but the consequences you will see a lot of protest on street will be increasing around the world.


First month of 2012 is the best stock performance month, US job employment increase, Malaysia property price doesn't go down, property will have 20% price increase announced by REDHA (A Malaysian Property Body) recently and might be impacted by choppy Euro zone economy.


So, why the worst is not happening?


Capitalism system - Due to the loosen regulation in this decade, the corporate executives and big bosses had stop taking more $ out from the system. They behaved by many regulations had introduced by the government with the aim to share their profit with the majority of the people and create more middle class to prevent social instability like ARAB unrest. This will also help cooling down/inflation the economy which caused by money printing just to profit 1 private corporation through treasury bond purchase and to achieve government objectives to balance up trade deficit and pay it's own debt.


So what is my investment strategy for this year?


Look for investment opportunities which will appear in the challenging time. Don't worry, Malaysian housing price will not came down, global economic will not collapse, Yes there is problem with the system, but plenty of ways to fix it.


1. Buy real estate (malaysia) due to low interest rate
2. Buy stock with high dividend when price at low (long term)
3. Buy rare mental-SILVER, Gold not recommended