MISSING THE BOAT

Now that the stock market has moved convincingly into its bullish phase, there is no lack of comment or lament by some investors that somehow they may have 'missed the boat'. If they think they have missed buying shares when there were being sold at rock bottom prices at the height of the economic crisis, then obviously they have 'missed the boat' as defined in their own terms. However if they feel frustrated for having missed the great buying opportunity in those dark, gloomy days of yesteryear, they have more specifically missed the point of the whole investment game.

To begin with, the stock market is always there for anyone to jump in and if you don't get into the boat yesterday or day before yesterday, you can always get in today. The boat is always there for anyone to get in and out and there is no way anyone can stop an investor from getting in, provided he has an interest in getting in and he has the money to by his way in. Nobody therefore, should consider himself 'missing the boat' because it is the future of stocks that an investor should be looking at and not brood about the past that is long gone and there is nothing that anybody can do to bring it back.

The stock market bottoms of 1998 and 2008 are seen as buying opportunities of a lifetime only because we have the wisdom of hindsight. Many of the market participants who went through the baptism of fire that time, were either too cash strapped to buy much or too fearful that the market has yet to hit the bottom. Most of us are wiser after the event but in the midst of personally experiencing a major episode such as a stock market crash or a super bull run, our emotions could exert a stronger influence on our decisions than our rational self. This is quite a natural phenomenon and that is why we have the repeated behavior of investors that gives rise to stock market cycles.

KHAIRUL IDZWAN IDRIS

Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda UMNO Bahagian Setiawangsa
Wilayah Persekutuan

HOW MUCH SHOULD I INVEST?

Do not put all your eggs in one basket - make this your guiding principle. No matter how attractive the stock market is right now, you should not put all your money there. It is not worth sacrificing the benefits of the diversification for the sake of quick returns when things do not go according to plan. It is also important to set aside a portion of your money for the rainy day.

Typically, an emergency fund should be able to sustain you for three months worth of expenses - payment on mortgage, other scheduled payments, insurance premiums and essentials. This fund should be placed in a bank account or as a fixed deposit so that you can use it when the need arises. Although the rates are low, capital security for your emergency fund should be given the highest priority. Remember, your debtors will still come after you regardless of how the market is doing.

After you have set aside an amount for the fund, you may have additional funds available for investment. These funds could be significant amount of your assets. they may include the funds that you will only need to tap into in the long term such as funding your child's education 15 years from now, and your retirement fund.

Having said that, you might choose not to put everything into the stock market. It depends on the level of risk that an individual is willing to take. If you are an aggressive investor with high risk tolerance, you will commit more funds into equities. Conversely if your risk tolerance is low, you should be more conservative and commit less to equity investments.

One rule is to invest the amount that you can afford to lose. I am not saying that you will lose everything when in equities. This rule serves to put you in the right perspective when considering your options. Also investors should not be ultra conservative as the cost of financial security in the long term will be very expensive.

I have highlighted the risks associated with direct investment in the stock market and the necessary level of exposure to be considered. It is important to remember that no one can afford to lose everything. Investment selection is an integral part of an individual financial plan. One wrong step can prove devastating. For first time investors, consider your options carefully and see it as your big 'financial picture' because no investment is worth losing sleep over. For seasoned investors, you have seen it happen. So do get it right this time.


KHAIRUL IDZWAN IDRIS

Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda UMNO Bahagian Setiawangsa
Wilayah Persekutuan

CONSIDER THE RISKS BEFORE INVESTING

The economic crisis which started in 2008 was devastating experience for many retail investors in the stock market. Many sold their investments at a huge loss, while those who held on to them, it was a long waiting period.

The market is bouncing back now and there will be many first time stock investors. Some old hands are also making a comeback despite having told themselves they would not dabble in shares again. As the markets moves leaps and bounds, it is easy to get caught up in the euphoria. You hear people saying " this stock is going to run in the coming weeks', 'this company is going to announce an internet venture, restructuring or merger' and so forth.

All this will no doubt cloud your judgment . Greed may start talking over your rational mind. I will not try to teach you stock-picking techniques, but will highlight the potential risks and level of exposure to be considered when investing, directly or indirectly in shares.

What are the risks?

There are many types of risks. A simple definition, in the context of investment, is the chance of the investment making losses or earning lower than expected returns. It is important that we going through investment options, we find a match between our risk tolerance and the inherent risk of the securities or investment we are considering.

Risk tolerance is basically the level of 'psychological discomfort' we are willing to endure from the investment. If you have high risk tolerance, you will be fairly comfortable investing in stocks or futures contracts in which values can fluctuate fast. Conversely if your risk tolerance is low, opt for more conservative investments that will not be subjected to wild swings like fixed deposits and money market securities.

When you have direct investments in the stock market, you are expose to both systematic and unsystematic risks. Systematic risk (market risk) is inherent in the market and cannot be diversified. Market risk is macro in nature and can include inflation, change in interest or changes in the country's economic policy.

Unsystematic risk (company risk) is risk that is unique to the specific company. Company risks include a rise in oil prices, special levies on tobacco or alcohol consumption or a drop in palm oil prices. Company risks can be reduced with a portfolio that consists of stocks or other investments that tend to move in the opposite direction in response to changes in the economic environment.

It is not easy to build a portfolio of stocks. You will need to spend time researching companies and come out with a significant amount of money. For retail investors, these will be the main hindrances - time and money. Therefore retail investors are normally subjected to higher company risks due to their restricted diversification, not to mention the market risk which is already inherent. This is an area where professional fund managers will have the upper hand, given the resources available to them.



KHAIRUL IDZWAN IDRIS

Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda UMNO Bahagian Setiawangsa
Wilayah Persekutuan

PEMIMPIN MUDA BERJIWA RAKYAT

Sekali lagi Ketua Pemuda UMNO Malaysia, YB Khairy Jamaluddin telah hadir dalam majlis mesra dan penyampaian sumbangan kepada JKKK, KRT, PIBG dan Masjid di kawasan Parlimennya di Rembau pada 4 Julai yang lepas. Pendekatan yang di ambil oleh saudara YB sejajar dengan seruan Perdana Menteri supaya mendahulukan rakyat dan sentiasa dekat bersama rakyat. Semoga dijadikkan ikutan bagi pemimpin-pemimpin muda yang lain dalam parti kompenan barisan Nasional. Syabas YB!

Khairul Idzwan Idris

Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda UMNO Bahagian Setiawangsa
Wilayah Persekutuan

PEMUDA UMNO BERSAMA MEDIA

Sayap Pemuda UMNO Malaysia telah melakukan kunjungan ke Pejabat Urusan Media Prima di Bandar Utama pada minggu ini. Kunjungan yang diketuai oleh Ketua Pemuda UMNO Malaysia, YB Khairy Jamaludin serta beberapa Exco Pemuda Malaysia termasuk Dato' Reezal Merican ini bertujuan untuk merapatkan lagi hubungan di antara Sayap Pemuda Umno serta pihak media. Sewaktu kunjungan tersebut, rombongan Pemuda UMNO telah di bawa melihat sekitar studio sambil diberikan penerangan mengenai operasi media berkenaan. Malah, Sayap Pemuda UMNO juga sempat bertukar-tukar pandangan mengenai isu-isu yang dihadapi oleh negara dan mendengar dari sudut perspektif mata media. Syabas diucapkan kepada Sayap Pemuda UMNO Malaysia akan pendekatan yang diambil.

KHAIRUL IDZWAN IDRIS

Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda UMNO Bahagian Setiawangsa
Wilayah Persekutuan

SIDANG DEWAN RAKYAT KECOH!

Dapat diperlihatkan sifat kebudak-budakkan parti pembangkang pada sidang pertama Dewan Rakyat selepas berehat selama 2 bulan. Sesungguhnya apa yang terpampang di mata rakyat semalam, membuktikan sifat kebiadaban sesetengah wakil rakyat parti pembangkang yang sama sekali bersifat kurang ajar ke atas perlembagaan dan institusi parlimen di negara kita. Suasana begini perlulah ditolak sama-sekali kerana ia mencerminkan fahaman ekstrimis yang hanya berdasarkan nafsu ‘gila kuasa’ dan bukannya ‘kuasa rakyat’ yang dilaung-laungkan selama ini oleh mereka, parti pembangkang. Renung-renungkanlah.

KHAIRUL IDZWAN IDRIS

Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda Umno Bahagian Setiawangsa
Wilayah Persekutuan.

CHIN PENG PERLU DISEKAT PULANG KE MALAYSIA

Suatu keputusan yang bijak dilakukan oleh kerajaan untuk tidak membenarkan Chin Peng pulang ke Malaysia. Sebagaimana yang diketahui sebelum ini, Chin Peng sebagai Ketua Parti Komunis Malaya telah membuatkan Tanah Melayu dahulunya kacau bilau dengan kehilangannya ramai nyawa yang tidak berdosa. Bukan sahaja ribuan nyawa terkorban malah Institusi Raja Berperlembagaan di negara kita juga turut tercelar akan sifat kerakusan dan kebiadaban Chin Peng. Adakah kita mahu berlembut dengan orang seperti ini? Ketua Pembangkang, Dato’ Seri Anwar Ibrahim baru-baru ini telah menyokong supaya Chin Peng dibenarkan pulang ke Malaysia. Apakah agenda politik beliau kali ini? Apapun agenda politik beliau, sememangnya ini melibatkan sensitiviti rakyat Malaysia. Rakyat Malaysia secara total menolak dan mengharamkan kepulangan Chin Peng semula ke tanahair tercinta, Malaysia.

KHAIRUL IDZWAN IDRIS

Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda Umno Bahagian Setiawangsa
Wilayah Persekutuan