Again, the ‘expectations’ of a rate rise being reported. As usual, one smaller currency would again be dumped on expectations that that super currency would be the focus of the world. It’s always chasing the one that has the most expectations of a gain within a short frame of time. Funny? Well, it applies to all the kinds of investments we see everywhere. In the property world, this is called flippers. In fact even in jobs, a fresh grad may choose to jump just for a few hundred ringgit extra without realising that very soon he may be overpaid for that same skill that he has. Well, this is the world. So, here’s a bit of world news below.
Reported in an article here. The Federal Reserve Chair, Janet Yellen said that as long as the U.S. job market continued to improve and major new risks did not arise, the rate would rise one more time this year. Yes, it should be in December 2016 if it happens. I also read an interesting article in Huffington Post. Do read it in full to understand another point of view about how the MONEY SUPPLY is being managed in the world’s largest economy. Please do not ask me if I support the view. I do not have a Finance nor an Economics Degree currently.
With these, what would be the expectations for Ringgit or even the BURSA? Volatile loh, mostly negative I would imagine even if towards the end of the year, there would be some window dressing activities so that the annual report looks better for some companies. For the really good ones, no worries it should still look good. 2016 has not been the crazy year that many has predicted and many companies continue to report profits. Actually during a real recession, majority of all companies would be in red and the retrenchments that is happening here and there would happen almost weekly. Hope the final Q would be great for all of us here in Malaysia. Cheers.
written on 2 Oct 2016
Next suggested article: Ringgit’s value is determined by the market. Period.
