Do you know that where does our money from EPF invest into? Here is the list of top 30 equity investments listed on Bursa Malaysia by Employees Provident Fund Malaysia as at 30 June 2010.

Last updated ~ 30 June 2010

via: Employees Provident Fund Malaysia

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Yeah… This is what you will hear from the stock research firms. Sell… Sell… Sell… The bear is coming…

Asia stock market @ 2010-05-25

Yes. The bear is here indeed. Every stock market in the world crashed. Why? Lot of the factors but most of all ~ Greek debt crisis and bulging deficits in other euro zone countries. And increased tensions between North and South Korea also heightened market caution? Do you feel that economy around you is back to normal? People started to buy more stuffs compare to last year? Less and less jobless rate? Lot of questions needed to be answered…

For me, as long as the company fundamental is good. You can invest in that company anytime with the right price. And now is the time to buy some cheap undervalue stocks.

P/S – I will wait for stock market to drop even further…

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Is December good time to invest in stock market? That’s the question that I ask myself lately. I did not buy any stock after selling Tanjong plc stock last month. And plan to buy back it again now. But when is the question. Therefore, I did some research on the previous years’ performance on the month of December. Let’s see the history speak for itself. Anyway, past historical record does not mean that it will perform as same as before. Stock market is not predictable. But you can know it better by studying more.

December 2008 KLCI vs Dow

As you can see, KLCI gains around 4% while Dow at 8% on December 2008. Below are the record from 2007 onward…

2007 – KLCI 2% gain while Dow flat
2006 – Both around 2% gain
2005 – KLCI 1.5% gain but Dow 1.5% loss
2004 – KLCI 1% loss but Dow 2% gain
2003 – KLCI flat while Dow 5% gain
2002 – KLCI 4% gain but Dow 6% loss
2001 – KLCI 8% gain and Dow 3% gain
2000 – KLCI 6% loss but Dow 1% gain
1999 – KLCI 9% gain and Dow 1% gain
1998 – KLCI 6% gain and Dow 4% gain
1997 – KLCI 13% gain while Dow flat
1996 – KLCI 1% gain but Dow 1% loss
1995 – KLCI 2% gain and Dow 1% gain

Woo… There are lot of blue colour ~ gain. I have my answer now. The stock market for December 2009 will likely go up.

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“Spend your money wisely”. Yes… We really need to use our hard earn money wisely. Else you will end up using all the money very fast. Why do I have this kind of feeling? Hmm… I want to buy lot of stuffs like new mobile phone, new SLR camera lately. Trying to spend the money that I earn from stock market lately. I do have financial planning but earning from stock market is not included in the spending plan yet. But I have decided to include it in starting next year. Therefore, I need to buy whatever I like before end of year.

To buy lists
HTC HD2
Nikon D700 body
Nikon 50mm f/1.4 lens
Nikon SB900 flash
Nikon 12-24 f/2.8 lens
Nikon 70-200 f2.8 VR lens (II)?
Nikon 24-70 f2.8 lens?

To sell list
Canon EOS 400D
Canon 18-55 kit lens
Canon BG-E3
Canon 17-55 f/2.8 IS lens
Canon 50mm f1.4 lens
Canon 580EX II flash

Should I buy new SLR system by switching from Canon to Nikon? It is a very expensive investment…

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Should I borrow money to invest in stock market? Actually, the concept is the same as borrow money to buy car or house. Just that car and house is a must for our daily life and not stock. Most of us cannot afford to buy car and house in cash. And need to borrow from bank with interest changes. Same apply to share margin financing. With proper finance management, borrow money to invest in stock market does bring more revenue.

I am using Public Bank Online Share Trading with Share Margin Financing account. The minimum amount to borrow is RM50k (last time is RM100k) and with BLR – 1.8% (around 3.8% based on current BLR) per annum interest rate. Public Bank will borrow you 1.5X money based on what you have in that account ~ cash or stock value. For example, if you have RM100k cash there, you can borrow up to RM150k margin to invest. So total up as RM250k. Same apply to stock value. However, the stock value is determined by bank and not the market value. Some of the stocks do not have such value and bank does not want to take risk to lend you too much money. And if you are not able to pay back the loan, bank can force sell your stock.

Choosing the correct stock to invest is important. You don’t want to invest on a stock have only 2% dividends and without any capital gain at all. Then you need to pay 3.8% to bank. End up you are losing money at 1.8%. So make sure you pick the high dividend yield stock to invest.

Timing is another factor. With economy getting better and in the recovery road, having more money to invest is a nice move. You can easily earn more than 100% during this time. Why? Most of the stocks are undervalue and at a very attractive price. Some stocks can even go up to 300%. Therefore, you can earn a lot more with this extra money.

Borrow money == Make more money

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