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Showing posts from July, 2012

Exchange Trade Bonds (ETB)

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When I first heard of Exchange Trade Bonds (ETB), I just wonder, what's that. Luckily, Bursa gave us some explanation. According to Bursa, this is the "product" that they will introduce to all retail investors by 3rd quarter of 2012. In fact, I don't understand why make the name so complicated, it a bonds, so just call it a bonds, simple and straight forward. For retail investors, what we more interested is how to make money? Usually, bonds yield range from 3% to 4% (unless you buy a junk bonds which provide high return), buying bonds and keep till maturity, the return is just similar to Bank's FD. The question is how to find oasis in the middle of desert? However, if you understand the relation between country's economy and interest rate, then trading in bonds will become very exciting! For example, if generally people expect a country's economy will become worst, then their bond price tend to trade high in value. The reason is because investors see

Dance with Stock Market

Ten years ago, if anyone tell you Greece and Spain will go bankrupt, you will think he is insane. Today, this is the fact. I am not an economic expert, I don't know about their problem and also don't know how complicated is it. But I do know one simple quote,  if you want to be poor, focus on spending. If you want to be rich, focus on earning, keeping and investing the money.  Borrow money just for spend it to enjoy now and pay later is a bad idea. Rich people know how to borrow money, or use other people's money to earn the higher return. I like the investment in stock market. It's the best way to keep your money against inflation. In fact, it's the friend of inflation if you choose the right company to invest. Over the years, you will be able to see your asset grow double or triple. In fact, I would say, Stock Market is the greatest invention for people to create wealth! The beauty of stock market is the price movement. Through the up and down trend, it provide