Tuesday 31 May 2016

What's happening in June?

May month is not that bad after all. Although there was a sell down at the beginning of the month, market started to rebound in the middle of the month. So, what's next in June?

Today the active futures contract for Hang Seng Index futures is June month and it was traded between 20294-20719 (425). Closing at 20474 (+157), it was 341 points discount compared to the cash market which closed at 20815.09 (+185.70).

For Hang Seng Index futures, we see next resistance at 20650. Next target 21000-21100. Downside supports are 20380, next 20100.

In Malaysia, today is the expiry for KLCI May futures contract. Market might consolidate between 1620-1640 in near future. Upside resistance, 1660; next 1680. Support 1608.


Monday 23 May 2016

Simple steps to become a millionaire

We've read articles about how to become a millionaire. We have real life examples of millionaire friends and relatives advices of not only work hard and work smart; effectively manage our finance is also crucial to maintain a millionaire lifestyle. Below are a few tips for sharing:

1. Set a weekly or monthly spending budget
Is that necessary to set a spending budget? You will be surprised to find out a healthy spending budget will save you on unnecessary spending. In long run, the saving could turn into a budget for your car or even a house. 

2. Track and record daily expenses
Sounds like a complicated job? It is always hard to begin with. But once you've started recording daily expenses neatly and continue with discipline, you can easily summarise them into a monthly expenses and from here you know where your money is spent.

3. Pay yourself first
Whenever the wage is out and paid into your bank account, always remember to set a portion of savings aside before you start using the rest of the money.

4. Saving for a purpose
If saving without a purpose, it is easy to use up the money once you see the numbers in the bank account. Saving for a purpose, such as for a new house, for higher education or to invest etc. Saving for a purpose will remind us not to use up the fund easily, unless for emergency.

5. Insurance for protection
If you think paying for an insurance is unnecessary, please think again. Although paying for insurance is like an expenses, the money is flowing out from your bank account. But then, when you need to make a claim from the insurance company, you would be grateful for having them.

6. Set up an emergency fund
Sometimes bad things happen in life. Losing a job, need a big expenses for medical treatment etc. It is wise to have at least 6 months spending expenses as an emergency fund for backup, just in case you are unable to work for a few weeks or months.

7. Funds allocation
Once saving and emergency fund is build up, allocate the extra fund you have for investment purpose. Buying a property, invest in share market or other potential business etc.

8. Start invest and grow the assets
It is never too early to start invest and grow your assets. It takes patience, time and effort to invest and let the assets appreciate in value. Your first investment might not make money; or you might fall into investment trap. Therefore it is advised to invest as early as possible. Learn from mistakes and accumulate the experience.

9. Wealth management
When your net worth reaches a certain amount; or your cash and assets had reached a certain level, it is time to manage your wealth. Learn how to protect your assets, manage your finance and cash flow as well as continue to grow the assets. 

10. Increase cash and asset, reduce debt
When your earning power is great, it is also translate into a higher spending power. Effectively using the high earning power to increase your cash flow and assets; try your best to reduce bad debt is the way to make your money grow more.

11. Spend within your means
It is not easy to spend frugally especially you know how rich you are. It requires discipline to spend within your means and live a down to earth lifestyle.

12. Retirement planning
Just like saving and investing, retirement planning is never too early to think ahead. While planning for your expected retirement lifestyles, it is always a good idea to plan it financially too.

13. Financial education
There is no way to execute Step 1-Step 12 without proper financial education. Read up on financial magazines and personal finance books; attending seminars and talking to people you know etc. These are the ways to increase your financial knowledge. Never give up if you fail and keep learning from the lessons and investment mistakes.

14. Charity
It is a blessings if you able to help the needy financially. If not financially, donation in terms of material or spend time and effort for charity work.

15. Don't forget to have fun
There is no point to have loads of money in your account but feeling empty or unhappy in your life. What is the point of working so hard to make so much money? Don't forget to have fun, enjoy life and spend the money when necessary. At the end of the day, there is no point having loads of money leaving for your loves one, but you are the one who don't use them.

Conclusion: Sounds boring? If these are the steps and actions can guarantee a financial free and stress free lifestyle, no harm in trying. No matter what is your occupation and how big is your earning power, we believe live frugally, spend wisely, invest smartly and manage our finance efficiently are keys to maintain a healthy and wealthy millionaire lifestyle. And also, enjoy your life and have fun.


Wednesday 18 May 2016

What is your net worth?

What is your net worth? According to Google's definition, net worth is defined as assets minus liabilities. For an individual, it represents the properties owned, less any debt the person has. For a company, net worth is the value of the company.

Is that a good news if an individual has no debt? From the accounting point of view, of course! It means you have assets or cash and without debt, this shows the net worth is positive.

But to a Bank's point of view, an individual with positive net worth is risky to deal business with. The bank is less likely to borrow money to an individual without loan repayment history and therefore it is not easy for the individual to borrow money for business expansion or purchase property.

If you were given a choice, do you want to be the individual who is free of debt or full of bank debt? 


Sunday 15 May 2016

How low is market going?

All Asia Pacific market ended in red on Friday closing! Nikkei was the worst performing market finished down 1.41 percent. Followed by Malaysia down 1.26 percent then Hong Kong market, lost 0.99 percent.

Range of the week for Hang Seng Index spot futures was traded between 19448-20253 (805). The futures lost 199 points settled at 19604; cash market lost 196.17 points finished at 19719.29 on Friday afternoon.

KLCI Index spot futures was traded between 1610.50-1652.50 (42.00) during last trading week. Cash market lost 20.72 points finished at 1628.26 while May futures contract finished down 22.50 points at 1621.00.

Dow Jones dropped 185.18 closed at 17535.32 on Friday. We expect Asia market to open lower on Monday morning. For HSI, we see the support at 19000; and for KLCI, supports are 1600, next 1580. On the upside, short covering might push HSI to 19950 or higher to 20300. For KLCI, resistance is seen at 1640.


Saturday 14 May 2016

35 things to do before the age of 35

We were cleaning our home office few days ago and we found a note written '35 things to do before the age of 35'. A note written few years back when we just started J&M Investments Portfolio.

Becoming a millionaire, owned multiple passive income, travel the world, run a charity fund, having our own kids etc. These could be the lists everyone is dreaming...the list goes on and on. Of course, we couldn't thought of 35 things to do. In fact, we only have 19 items on the lists and we had achieved quite a lot these few years before our deadline- the age of 35 which is in 12 months! 

Looking back, it is not how ambitious we were writing these goals. Setting reasonable and achievable goals within certain time frame let us foresee our futures; on and off looking at and reviewing what we wrote push us go further along the journey we wanted to travel. At the end of the day, it is not the goals that make us proud, it is the journey we went through that shaped us who we are today.

When the deadline reached, it will be a time for us to reset our new goals, new future and begin a new journey. No matter this is a journey towards a life goals, career goals or financial goals, we are trying our best to enjoy the journey, welcome all the obstacles and celebrate all the happiness and winnings.

Have you set your goals? If not, it is not too late to start now.


Monday 9 May 2016

Sell in May!

The market was declining since first trading day of May. The effect of Sell in May...

In Hong Kong, Hang Seng Index May futures ended at 20049 (+74) at today's closing; cash market gained 46.94, closed at 20156.81. Range of the week for Hang Seng Index futures last week was recorded between 19887- 20987 (1100). The market broke the support of 20000. Where is market heading from here? 

Market is oversold. It is not surprise to see a rebound in HSI...But after that, is the sell down continue ? Or it is time to slowly collect shares? We see the resistance at 20250, next at 20500 and higher at 20800. On the downside, supports are 19800, next 19400.

In Malaysia, KLCI May futures was traded between 1629.0-1667.0 (38.0) last week. At today's closing, futures closed at 1629.50, lost 11.50 points while cash market ended at 1632.19 (-17.17). Immediate support is found at 1625, next support is 1600. On the upside, market will retest 1648. Higher resistance 1665.

Currently, we are hedging in the futures market. Sell when market rebound and buy on dips. We are monitoring the share market and will slowly collect at the right time. Our portfolio still consists of dividend stocks, REITS, foreign currencies, cash and properties. We will reallocate the percentage of holding according to the market condition.


Tuesday 3 May 2016

Sell off on first trading day of the month

Despite Wall Street posted a gain of 117.52 points last night, the Asia market ended with a mixed result. Especially for the market who enjoyed a long weekend, first day of the month actually begin with a terrible sell off.

The worst performer is Nikkei who lost 518.67 or 3.11 percent at today's closing. Hang Seng Index broke 21000; settled at 20676.94, lost 390.11 points or 1.85 percent. FBM KLCI Index broke our predicted support; finished down 21.28 points at 1651.44.

The May futures contract for Hang Seng Index ended at 20545 (-309). Range of the day was traded between 20502-20984 (482). Immediate support for HSI is 20450. Next crucial support is 20000. As for KLCI spot futures, market ended at 1642.00, lost 20.50 points, about 1.27 percent. Near support is seen at 1640.0, further support is 1600.

Dow Jones falls 180 points at the moment. Will we see a further drop or recovery by tomorrow morning? Looks like another volatile selling is happening...