US debt ceiling and its implication...

Well the problem that US is facing today is a classic case of financial mismanagement or in layman term spending more than what we earn. US have been spending way to much, way to fast. USD14.3 trillion debt is enormous and that will take probably half a century to repay that amount for an economy the size of US.

Between Boehner vs Reid's plans, I would personally prefer the latter, no doubt about that.
However the US congress have to realize that no matter which route they choose, spending cuts and tax increase is imminent. Austerity measures must be taken if US is really serious of preventing the debt problem from spiraling out of control. Simple concept of life, when overspent, you cut and rebudget future spending. No one can continue to borrow and life luxurious life forever especially in this case, we're talking about hundreds of millions of Americans future, the future of their children.

US politicians should understand the repercusion and not keep pushing this to the 11th hour. While it was claimed that there is a Plan B being put up as we speak, it should not contain anything unexpected beyond what was mentioned above, that is spending cuts + tax increase. The tax increase may not have to be a blanket measures but expect it to be implemented on selective groups -mainly the rich.

The whole world is watching and we all know US will not let the country default its payment and neither would Obama go down as the 1st US president that leads the country to a default.
2nd, we know the problem and we know what must be done for the good of the nation.
Politicians should sit down objectively and put their difference behind and work out a viable plan. There will be no winner or loser in this case, whichever plan gets implemented the American people will be the ones absorbing the impact.

Bear in mind that the longer they delay the resolution to the deadlock, the bigger the repercusion. Reputation is at stake here. Credit ratings is almost guaranteed to be downgraded from AAA. Bottomline, the delay is uncalled for.

A lesson to be learn for countries around the world... as my parents used to say... richness can only be sustained with prudent spending, continuous savings and educated investment. No one can deny that.

Time to buy some serious stocks!!!

We have seen the rally and the consolidation and despite the gloomy outlook in US economy and the on going debt ceiling stalemate, the world economy will rise and perform better than expected. Similarly, I am expecting Malaysian economy perform in the similar trend...
The GE13 is not going to be around the corner as many have anticipate or perhaps I should say the BN had wanted the rest to believe...
Putting that aside, corporate earning results will continue to rise better than expectation for most of the "elite" pool of companies and now is the time to buy in serious volumes...
I expected the stock to rise in the next 4-6 weeks from now. We can all witness.
Particularly preferred is Boustead, DRBHicom, Dialog, Genting and Perisai in that sequence.

KLCI movement this week...

Well, Yingluck Thaksin has done it!... well done to the red shirt. The party surely has a lot on its plate... particularly important is the 40% increase in minimum wage.
Anyway, in Malaysia the country is facing the Bersih 2.0 rally this Saturday so what does that means to the stock market?
To be honest, i think the stock market has already factored that in.... no surprises, the only thing is if UMNO led gov really go all out to stop the gathering either through ISA, EO, Police arrestment of all suspects with yellow theme, then it will likely be a no event but the chances of that happening would be less than 5%. Why?... simple.

First, does the country has enough jail space? 2nd, it would instantly be labelled as Libya no.2.
Malaysia's involvement in any human right related matter would be viewed as a joke. Unless of course if the politicians are too dumb to realize the impact of their actions.
First, I do agree having the rally will affect business... but surpressing them would be an insult to democracy. So why don't give then a space and ask them to gather there in peace. It can be used as a way to gauge the support of Bersih and at the same time if the number is very high, BN should know what to expect in GE13 and on the other hand, if the turn out is low, it would be a slap on the face to the opposition parties. Either way, I see BN is set to gain valuable info from this rally to prepare themselves for GE13.

Thailand's opposition win is a sign for BN that no one stays in power forever unless you turn into communism like China, else its common to switch power to mitigate abuse of power and complacency. Be a gentleman BN, don't act like a coward and last I want is for other countries to view Malaysia as a communist country with no law and act barbarically to silent critics.

I value my investment and hope those stupid politicians don't screw up my big plans.