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Doing nothing versus getting ready, the signs may be almost the same

Are you saving more of your salary (if you still have them) since you are at home and could not use much of it anyway? Are you liquidating some of your illiquid assets and keep them into liquid ones like cash in bank so that at any point in time, you could draw upon them to invest into opportunities?

Actually, for both of these different actions, the number in the bank will show an increase in savings into the bank. It may even be Fixed Deposit but it may be the 1 month kind versus the 12 months kind. No idea which is more true but what’s healthy for Malaysia is that Malaysians are now saving a lot more money into the bank! In both the current accounts and savings accounts. We have this very interesting news about Malaysians who are suddenly saving a lot of funds into the bank.

Article in themalaysianreserve.com Bank Negara Malaysia’s (BNM) data has shown that bank deposits in current account and savings account (CASA) surged 10.3% and 12.6% in March and April 2020 respectively. Meanwhile the currency in circulation (M1) stood at RM466.2 billion in April 2020 compared to RM425.3 billion in the same month last year, reflecting a year-on-year (YoY) growth rate of 9.6%.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said, “People just want to hold on to cash. That’s it. There was too much uncertainty during the early days of the Movement Control Order (MCO). We do not think businesses and households are putting a complete stop to their spending plans. It’s just that they may want to conserve more cash in the event of calamity in the economy.” It’s a long and comprehensive article. Do read it here: Article in themalaysianreserve.com

In recent few weeks, I have researched more stocks than I did for the past 12 months. Just wanted to be sure that I am investing into some sound companies which are now undervalued based on its potential and even assets. Did you know that today, there are already many companies where if you were to buy them based on their current price, the total value of the company (book value) is already higher than the price you pay?

Briefly, if this company you bought into suddenly decided to delist and sells all their assets, the money you will get is more than the money you paid. Just google for the many articles in google. Just remember to do your own due diligence and not just simply trust whatever that person says. Even in property, two persons buying the same property may have a totally different result. Key is ‘holding power.’ Happy understanding that investing is a continuous effort. It does not not stop just because of COVID-19. If it did, then we are going to have to wait for a very long time for it to restart. No COVID-19 vaccines are expected anytime soon…

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Next suggested article: My forced savings worked for me. What about you?

Property Investment always start with knowledge. Equip ourselves with more here.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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