I have about 500k in cash. What should I invest in light of impending recession? As I travel alot, can it be monitor online?

5 kilobars of gold. You can carry with you

Invest in stones and natural minerals always a good choice e.g. Gold, Diamond, Silver etc....even Oil.

However, if these natural resources are not your cup of tea....i think investment in equity is always a good choice EVEN pre/during/post recession AS LONG AS the fundamentals are good/intact. Strong fundamentals + Time Horizon = Warren Buffet's philosophy.

Since you travel alot...it implies you have minimal time to monitor your investment. Thus, suggest you engage with a financial planner/professional fund manager or think about unit trust.

Hope it helps.

buy land

buy land and grow oil palm!!

Buy in an Island, Buy Pg Land.

Speculation. Unless you convert the land to productive use as what Sook Yee is proposing. Land is one of the traps used by the Exploiters as described in one of The Rat Race series.


Good idea. Production.


Diamonds: The value lies in its rarity and De Beer's b*llsh*t about it being woman's best friend. New technology coming out that can produce flawless diamonds. You could find yourself holding crystalline carbon.

Gold and silver is ok. I remember from my chemistry class, they haven't found the way to manufacture gold yet. God knows many have tried. In a financial crash, gold is the ultimate store of value.

In investments, trust only yourself.

Equity: Big profits in paper currency could be dealing with fool's gold. Speaking from experience here.

Ask yourself: What happens if the USD goes the way of Zimbabwe?
Countries, like individuals, can go bankrupt. The US is technically bankrupt. USD 9 trillion in debt = 70% of GDP. If you stack USD 100 bill horizotally, it can go from KL to Johannesburg!

The other Central Bankers are shivering in their pants trying to prop up the edifice because a default by the US will bring the whole house of cards down with it. BTW, Bear Stern's bailout is a telling sign. Remember that little English girl who saw the water receding in Phuket on 26 Dec 2004? tsunami photos Sometimes, we are so busy being busy, that we don't pay attention to the warning signs in the horizon.

The only way out for the US is war or to inflate the USD to zero (If you are holding RM, watch it, baby). Both have been tried in the past, so it is nothing new. Watch Bush's war-cries over Iran.

The crucial question for us is:

Do we have a plan B?

In the present financial climate, we should be thinking only of protection of our assets and survival, and not how to make money. The time for that will come later, after the tsunami is over. Unfortunately, the wreckage will be heart-breaking. So, instead of making money, we will be spending money to help those who are not so fortunate.

But charity starts at home. Protect yourself first.

What about Maika shares ?

I still think land is the most solid investment. All the others does not last. Even gold, if technology becomes so advanced... someone manage to create gold and thats it. whatever holding you have are finished. BUT land will never go away. Even you drop bombs on it, it will still be there.

LOLlllllllllllllllllllllllll. Gud one silver_bird ............ The great Sengkotai Singam, Samy Velu will love you ........... he needs more good money going after bad alright ......

500K is a lot of money but I will not go into land (long gestation period), or diamond or gold (highly speculative) etc. It is not like I have millions.

For a Malaysian, the 500K can be put into FD until the time is ripe to take it out. It can either be parked in Chinese Yuan or Swiss Francs. Ringgit is OK in my mind since it will be invested in the country rather than outside. When recession occurs, buy a prime property like a shophouse and the rest into blue chips with good dividends. For example:

1. Use RM200K as downpayment for a shophouse which can give a 7% return.
2. Use the balance RM300K to buy blue chips. Identify 3 or 4 blue chips counters for medium term investment.

Using this strategy, the shophouse will eventually regain its full value and will provide a consistent rental income of 10% return and with time, will appreciate further.

Blue chips always recover first in KLSE. If buy low, the dividends can be high using the entry price as a benchmark.

This is my personal opinion. Read well, listen well and act well.

Funny that I seem to notice that everyone has their own ideas with their own pros and cons.
Firstly, with that kind of money, be it hard earned or thru an inheritance, my advice is to invest in knowledge.
Each of the asset classes mentioned above has their pros and cons but you do have to acquire knowledge on how they work.
It is said that if you know what you are doing, you are investing. If you are totally clueless, then you are gambling.
My advice would be to park your money in a safer investment vehicle that you have knowledge of first. As you acquire more knowledge on higher risk investments, then only slowly move into it. That way you won't be seriously burnt.
Having 500k sitting there being eroded by inflation will always be better than the 500k invested somewhere you have no idea to be eroded by losses and inflation.
This might sound conservative but hey, you will still be holding on to the 500k.

Consider investing in 100% Capital Guaranteed Structured Deposit - FRNID (Floating Rate Negotiable Instrument of Deposit). It's a no-risk medium term (3yrs) investment.
Expected return (not guarantee) is about 40% at maturity. Having invested in C.S.S. in Oct 2006, we're presently enjoying return of 17% after 18 mths. Bought RM100k, value todate = RM117k.
Most FRNID investment have no entry, annual, trustee & exit fee. For Conservative investors, park your cash as FD in BR @ Taipan. Placement for a month @ 3.55% p.a. (highest in town).
So, your RM500k @ 3.55p.a. = RM 17,500 / 12 = RM1,480-00 per month. Easy money. Sleep soundly. No stress spending & Happy Family.
Simple thumb-rule : High return = High risk game.

The worst is yet to come, hold you cash and wait KLCI to drop below 1000

Where is Rocker by the way?