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Thread: It breaks 3.8

  1. #901
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    Quote Originally Posted by Naka View Post
    Sorri, sorri, tons of money
    pallet1.jpg ini dia ...
    in luv with bikes...in lust with AphroditeS AWAS! Suspek is an Avid procurer to myths, lies, legends, folklores, i-ching, rumors, misinformation, cakap-ayam, spɹoʍ uʍop ǝpısdn puɐ˙˙DLL .
    p/s Take all the above with a XL salted duck egg, wash down with 2fingers of sodium hypochoride, and suck on to a pebble size tmn negara Rock salt

  2. #902
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    Quote Originally Posted by Naka View Post
    'Net Gain' in what?

    Mind sharing?
    Ok lah... here is a lengthy answer....

    Let say, you have a chance to buy a US stock at discounted price. The discount is a part of remuneration benefits.

    Let say, the market price of the share was USD20 four years ago. You can buy at discounted price of USD15 but cannot excercise the option in the next four years.

    The share price may raise or fall after 4 years, nobody knows. You only have 25% of cushion to play with if the price falls below USD20. Also, if you buy with local currency, there is another risk of currency exchange rate fluctuation. Bear in mind, USD/MYR was around 3.25 in 2013. MYR may strengthen, nobody knows, just like MYR is straightening against pound sterling after Brexit.

    If one decided to take the option, quite a big churn of cash outflow is required as the price is USD15 per share. In Ringgit would be around 50 per share. At that time, I did some homework and my conclusions were :

    1) share price
    This share price prior to 2013 has not experienced drastic fall of more than 20%, not even in 2007 subprime crisis. Hence, it seemed like a safe bet .

    2) MYR
    The Fed was still printing greenbacks in 2013, I think USD will get weaker and hence I will get less ringgit once I sell them later.

    I was beting on the share price will at least around USD20, anything more will be extra bonus. I was expecting the exchange rate four years later to be around 3.0 to 3.1.

    Fast forward now, the share price was higher and the best part is the exchange rate now is 4.4 !! Without doing anything, the weakening of ringgit gives an instant 35% gain on top of share price gain.

    I have no problem with shringgit. ..
    Last edited by opulant; 03-03-2017 at 01:16 PM. Reason: forgot to add smileys.
    Simpletons are the majority in a society. Donít argue with them as they cannot comprehend they actually have a smaller brain sizeÖ.

  3. #903
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    Quote Originally Posted by opulant View Post
    Ok lah... here is a lengthy answer....

    Let say, you have a chance to buy a US stock at discounted price. The discount is a part of remuneration benefits.

    Let say, the market price of the share was USD20 four years ago. You can buy at discounted price of USD15 but cannot excercise the option in the next four years.

    The share price may raise or fall after 4 years, nobody knows. You only have 25% of cushion to play with if the price falls below USD20. Also, if you buy with local currency, there is another risk of currency exchange rate fluctuation. Bear in mind, USD/MYR was around 3.25 in 2013. MYR may strengthen, nobody knows, just like MYR is straightening against pound sterling after Brexit.

    If one decided to take the option, quite a big churn of cash outflow is required as the price is USD15 per share. In Ringgit would be around 50 per share. At that time, I did some homework and my conclusions were :

    1) share price
    This share price prior to 2013 has not experienced drastic fall of more than 20%, not even in 2007 subprime crisis. Hence, it seemed like a safe bet .

    2) MYR
    The Fed was still printing greenbacks in 2013, I think USD will get weaker and hence I will get less ringgit once I sell them later.

    I was beting on the share price will at least around USD20, anything more will be extra bonus. I was expecting the exchange rate four years later to be around 3.0 to 3.1.

    Fast forward now, the share price was higher and the best part is the exchange rate now is 4.4 !! Without doing anything, the weakening of ringgit gives an instant 35% gain on top of share price gain.

    I have no problem with shringgit. ..

    Thanks for the clarification or else I will think of 'pallets' or sea containers

  4. #904
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    Quote Originally Posted by Naka View Post
    Thanks for the clarification or else I will think of 'pallets' or sea containers
    Where got pallets falling from sky nowadays. .. Everything has to put some efforts and take some "calculated" risks...

    The reason I share this has nothing to do with the gain or lost.. just try to illustrate a point that weakening rinngit can be good news too..

    Of course simpletons will argue that the quantum of shringgit is lesser now but as long as you 're living in this land, ringgit or shringgit is the currency. When the currency weaken, just have to find more to offset the depreciation.
    Simpletons are the majority in a society. Donít argue with them as they cannot comprehend they actually have a smaller brain sizeÖ.

  5. #905
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    The chairman of the Federal Reserve has given the strongest signal that she will raise interest rates this month !!

    " Janet Yellen said a rate increase would “likely be appropriate” at the Fed’s next meeting on March 15 if US employment and inflation data continued to show the recovery remains on track."

    http://www.telegraph.co.uk/business/...te-data-holds/

    When the Federal Reserve increases the interest rate, it normally appreciate the dollar. The Fed controls the economy by increasing interest rates when the economy is growing too fast.

    It seems like 4.5 or even 4.6 is imminent....
    Simpletons are the majority in a society. Donít argue with them as they cannot comprehend they actually have a smaller brain sizeÖ.

  6. #906
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    Quote Originally Posted by opulant View Post
    .....

    The reason I share this has nothing to do with the gain or lost.. just try to illustrate a point that weakening rinngit can be good news too..

    .......
    Agreed....when ever I spend $ in Boleh, I divide it by 3.4.....OMG ...I can't believe my luck

  7. #907
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    Quote Originally Posted by opulant View Post
    The chairman of the Federal Reserve has given the strongest signal that she will raise interest rates this month !! When the Federal Reserve increases the interest rate, it normally appreciate the dollar. The Fed controls the economy by increasing interest rates when the economy is growing too fast.

    It seems like 4.5 or even 4.6 is imminent....
    https://www.theguardian.com/business...interest-rates

    The Federal Reserve is expected to raise interest rates on Wednesday... !!

    " The latest US jobs report removes any lingering doubts about whether the Federal Reserve will raise interest rates next week. It is a bolt-on certainty that the central bank will push up the cost of borrowing by a quarter of a point. It is now almost 10 years since the start of the financial crisis ushered in a period of ultra-low interest rates and it has been clear for a while that the Fed is anxious to speed up the normalisation process. A healthy labour market is the key to that process... "

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    Simpletons are the majority in a society. Donít argue with them as they cannot comprehend they actually have a smaller brain sizeÖ.

  8. #908
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    I think this rate hike is expected and factored in by the market. So in the short term will remain at around 4.5 (real world rates)

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