tag:blogger.com,1999:blog-13712211.post6668411346300757716..comments2015-03-16T10:59:17.200+08:00Comments on The Main Streeter: Volume 3 Issue 3: Intelligent InvestingShihonghttp://www.blogger.com/profile/02264003213143587074noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-13712211.post-83994920605511928842011-01-20T20:32:04.414+08:002011-01-20T20:32:04.414+08:00One simplified yet extremely insightful on inflati...One simplified yet extremely insightful on inflation AND how our inflation rates are continually kept low by government subsidies.<br /><br />It is a sad thing for Malaysians,<br />but i would like to add to this depressing revelation.<br /><br />In light of the recent gains our Malaysian Ringgit has against the US dollar, I would like to emphasize that our Ringgit has depreciated against other countries such as the Swiss Francs ,the Australian Dollar and other currencies etc.<br /><br />Calculating the fact that heavy investment flows are entering to the NEIGHBORING countries such as Indonesia, Thailand, and Philippines who are more competitive and have achieved higher growth in their GDP in recent years, with heavy government investment and subsidizing in potential growth industries, Malaysia is 2nd choice for foreign investors. <br /><br />What happens here is that as our industries lose their relative competitiveness, due to over reliance to commodities and under-specialized, non-heavy industries, our economy will suffer a slowdown. Coupled with the fact that our currency is depreciating,it is a dim outlook for me of the Malaysian economy. In certain markets whereby currencies depreciate, usually their stock markets enjoy an inflow of foreign investment(etc USA & Germany). Sadly, this is unlikely to happen to Malaysia, and all that can be said is.<br /><br />Perhaps investing in FD is not the only knack, sadly holding your money in Ringgit could lead to you having the best Double Slap in your life in the coming years. Run, and run far.!jameshonoreply@blogger.com