Long Term Investments

We have not blogging for more than a month. It's not that we are losing interest in the market, it's just that we are way too busy with our personal life!

Managing a portfolio is not an easy task, we had come all the way and we are still learning. At this juncture, we might be slowing down a bit in the futures and stock market, as we are busy with the new home and office renovation; plus, our newborn just arrived not long ago.

To us, these are achievements! A new house and a newborn in the same year. They are also our long term investments!

Monash IVF

Our trailing sell stop triggered and we finally sold Monash IVF which is listed in the Australian Stock Market after holding more than a year. Since we were busy with the home office renovation, it is not a bad idea to set up trailing stop to protect our profit. We could have made more than what we pocketed today; but who knows where is the highest high. We could have made lesser if we sold our holdings earlier. Anyway, we are glad with the profit.

Australia cash rate is about 1.7 percent given by the banks, especially the big four after the recent interest rate cut last month. Including dividend and the capital appreciation, we have bring home about 34 percent from selling Monash IVF. It is not a bad deal in the current low interest rate and volatile environment!

Since we've got some capital, it is time to hunt for other potential stocks in the OZ market...

What the charts tell us

A quick scan at the daily charts and we've found for DJIA, its nearest support is at 18200. If this level able to sustain, market will slowly test 2016 high, which is 18622. On the other hand, break below 18200 will test next support at 18000. A big correction might comes if Dow broke below 18000, far support-17600.

As for Nikkei 225, the market was range trading between 15500-17000 since Feb till today. Where is the market heading? Will the 28 Trillion stimulus able to move the market higher? Far support we are looking is at 14000. Upside resistance 18000, next 22000. These are the trading range we think Nikkei 225 gonna move for the rest of the year.

We haven't seen any recovery yet for Shanghai Composite Index since the big drop from May 2015. The market had been moving between 2700-3100 from beginning of the year to date. Nearest support for SHCOMP is seen at 2900, next 2800. Resistance 3100. If Shanghai market able to break above 3100, next target 3300-3400. Will China becomes the favourite market for investors and fund managers?

Hang Seng Index rebounded aggressively since the Brexit day close to 19500 from end of June, till today's closing at 21739. Immediate support is found at 21500. If further correction happened, next support we are seeing is at 20500. Near resistance 22500.

KLCI Index and the currency Ringgit considered as the worse performing market in South East Asia region due to 1MDB incident. Market was trading between 1600-1730 for the past seven months. We think KLCI Index will test support at 1640 in near term. Further down, support is 1620. On the upside, resistance is 1670. 

DJIA broke record high

Overnight Dow Jones gained 10.14 points closed at 18516.55, off record high from 18557.

Hang Seng Index July futures closed at 21731 on Friday evening (+145) while cash market ended at 21659.25 (+98.19). Range of the week for HSI futures was traded between 20835-21773 (938). HSI was ranging between 19500-21500 since March; looking at the chart, the nearest resistance is seen at 21857. If market able to break above this level, next target is 22000. Higher resistances-22568, 22813. On the downside, immediate support is at 21663, further down 21157.

As for KLCI Index futures, July contract gained 11.50 points ended at 1668.0; cash market gained 13.62 points finished at 1668.40 on Friday closing. Range of the week for spot futures was traded between 1649.0-1671.0 (22.0). Immediate resistance for KLCI Index is found at 1680, next 1695. Support 1658.0.

What should we do with the rate cut?

Interest rate cut translates into less interest offered by the bank if you are a fix deposit saver in Malaysia. The standard fix deposit rate in Malaysia bank's is 3 percent per annum. Banks offer a higher rate if the capital you deposit is higher, or the tenure you save is longer! With the rate cut news released yesterday, we believe the latest fix deposit rate will be reduced by banks very soon. 

We think it is time to allocate some funds into the sharemarket. Our top picks would be Bursa Malaysia- the Stock Exchange of Malaysia which offer high dividend; property companies such as LBS Group, SP Setia and Sunway Group, Reach Energy and Real Estate Investment Trust such as YTL REIT, IGB REIT and Pavilion REIT. 

Of course, if you have the ability to borrow from the financial institution and have the ability to pay the mortgage, we think this is an opportunity to hunt for affordable properties. We bought a property few months ago, looking to transform into J&M home and office.

Malaysia cut interest rate to 3%

Bank Negara Malaysia (BNM) decided to cut Overnight Policy Rate (OPR) to 3 percent after the meeting today. This is the first time interest rate cut after 7 years from Global Financial Crisis. Is Malaysia moving into a low or zero interest rate trend soon? Perhaps it is time to hunt for affordable properties or quality stocks in Malaysia market! 

When the news was released, July KLCI futures was trading at 1660.0 (+2.0); range of the day was traded between 1654.0-1662.5 (8.5) while cash market was at 1658.31 (+4.34). As for Ringgit, 1USD is equivalent to RM3.98. 

Brexit Day!

Brexit Day! The voting started at 1400 KL/HK time zone yesterday and we'll get the result at 1400 later this afternoon. Whether Britain will leave the European Union or not, the market is definitely a volatile one! No matter is stock and futures market or the currency market. So, buckle your seatbelt and stay safe! 

Hong Kong market had up for five consecutive days. At yesterday's closing, the futures market gained 152 points closing at 20895 while cash market closed at 20868.34, up 73.22 points or 0.35 percent. However, today is an extremely volatile day. Range of the day for June futures contract was traded between 20190-20999 (809). Immediate resistance for HSI is seen at 21157, next 21700. Supports- 20540, 20160. 

As for Malaysia market, KLCI Index futures ended at 1643 while cash market finished at 1639.98 at yesterday's closing. Range of the futures for morning session is traded between 1623-1638 (15). Support for KLCI is seen at 1605; resistance- 1650. 

Shanghai Disneyland

The Shanghai Disneyland is officially open today, after years of construction.

At today's trading hours in Hong Kong market, Shanghai Jinjiang Hotel International Group (HK:2006) which is the subsidiary of Chinese Government owned Shanghai Sendi Group is trading between $2.84-$2.91. How will the share price perform in the future? We'll see.

As for Hang Seng Index futures, market is trading below 20000 for June contract; after touched highest at 21157 on the 8th of June. So far, the trading range for HSI is between 19900-21157 (1257) in the first half of the month. 

Resistance is found at 21150; next 21350. On the downside, we think market is testing 19448. Further down, 18850 is far support. At the time of writing, HSI June futures contract is trading at 19942 (-327); while cash market is trading at 20108.05 (-359.47). 

Important people in our life

Apart from your family and your loved one, there are a few important people in your life could help you succeed in your life and financially.

These VIP are known as accountants, brokers which include property or equity brokers, bankers, solicitors, insurance agents and tax advisors.

If you could not find a good accountant, it is better for you to be the one. After all, it is best to know your own financial situation rather than leave it to accountants! Plus, it save your money if your don't hire one.

If you are running your own business or you are holding a high position in corporate life, you certainly need a good broker to get the best deal for you, in order for your investment to grow. Unless you are the one who do your own research and you are the one who make the deal. Again, it save you broker fees!

Sometimes you need a banker to advise you what is the latest trend in the banking industry. Interest rate changes, latest deposit rate or borrowing rate etc. A banker can help to make your money work harder.

It is a good idea to have a trusted solicitor to help you in advising all the legal matters. Not that advising on how to run away from tax man; but at least to help in speeding up the legal process in your business or buying and selling investment properties. 

Whether are you rich or not, we think it is a good to have an insurance agent in providing services and advices on protecting your life and your assets. From advising what is the appropriate insurance package to have in different stages of life and helping in making claims whenever we need it. We definitely need this person's help!

And finally, everyone wish to have more money in their account rather than donating them to the government- the tax department! If you have a tax advisor, he might be able to help you to save some money so you have extra allowances for holiday!

These are the people we think are important in helping us succeed in our life financially. However, the most important person still "us" who make the decision and execution!

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.

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.

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? 

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.

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.

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.

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...

KLCI went further south...

FBM KLCI Index went further south today. Can we blame the news of bond default? The news shaken investors confidence, created an opportunity for market sell off. Cash market lost 17.58 points or 1.04 percent at the end of the day, April futures lost 23 points settled at 1670.50 while May futures contract ended at 1662.50 (-24.00).

In Hong Kong, futures market was a volatile trading session as today is the expiry of the April futures contract. Spot futures settled at 21470 (+180) while May futures contract finished at 21118 (-7). Range of the day for May contract was traded between 21122-21567 (445). The cash market gained 26.43 points finished at 21388.03.

Looks like Hang Seng Index is supported well above 21000 for the time being. But next month? Will we see higher high? Or lower low?

FBM KLCI Index is oversold within these few days. Will we see a rebound soon? 

FBM KLCI Index closed below 1700

We mentioned yesterday that FBM KLCI Index need a breakup or breakdown to break the boring trading range. Finally, we saw a breakthrough this afternoon thanks to 1MDB scandal - the default of $1.75 billion bond!

The spot futures open at 1712.0 in the morning, highest touched 1713. Futures contracts rollover activity plus the default news pressed the market all the way to 1702 in the morning session.  The support at 1700 couldn't hold on anymore. We saw market lowest went to 1690.0 before futures settled at 1691.0, lost 22 points. Cash market closed at 1692.50 (-22.01).

Immediate resistance for KLCI is seen at 1698. Higher resistance at 1706. On the downside, near support 1675, next 1650. Ringgit was weaker, last seen 1USD~ RM3.91.

Sell in May go away?

Market was range trading for the past one week. For Hang Seng Index, it manage to hold above 21000. The trading range for Hang Seng Index futures last week was traded between 21021-21664 (643). No matter how market falls, HSI is trading above daily MA10-21260, a sign of market is moving on a buying signal. The futures settled at 21291, lost 190 points at today's closing. For cash market, finished at 21304.44 (-162.60).

This week is the final week of the month. The futures market will start the contracts rollover activities and the long weekend is coming. How will the market moves? Will we see a higher high next week next month? Bear in mind, next month is May. The market is always spooked by the saying of "Sell in May and go away". Plus, Hong Kong market had been up since Chinese New Year, does it mean another correction coming?

Anyway, we sold Emperor Capital (HK:717) after a 10 percent profit within a month. We will look at it again if Sell in May comes. If not, we still have other stocks in hand for dividend collection in the second half of the year.

If 21500 had become resistance, 21000 is an important support for HSI. Further supports are seen at 20800, next 20450. On the upside, if market broke above recent high 21664, market will moves towards 21800, next target 22000. 

In Malaysia, FBM KLCI was ranging between 1700-1725 for the past one month. At today's closing, cash market closed at 1714.51, lost 3.45 points. The spot futures finished at 1713 (-6.50). KLCI Index need a breakthrough. The market need to break above 1730 to see a new trend. If not, breaking below 1700 will see supports at 1675, next 1650.

All Asian markets ended in green

After overnight Dow Jones closed up 164.84 @ 17721.25, today all Asian market ended in positive territory. Hong Kong market is the best performing market, surged 3.19 percent, Nikkei closed up 2.84 percent and Shanghai ended up 1.44 percent.

Hong Kong April futures market opened gap up 239 points in the morning. Lowest traded at 20691, market went highest reaching 21223 at the end of the trading day and finally settled at 21216, surged 746 points or 3.64 percent. Cash market finished at 21158.71, up 654.27.

In Malaysia, KLCI Index futures was traded between 1716.5-1724.5 (8.0). Futures closed up 7.5 points at 1721. Cash market gained 8.11 points settled at 1723.11.

Will market moves higher? Technically, Hang Seng Index broke crucial resistance- daily MA100-20557 and 21000. There is a chance market will move higher; with on and off profit taking comes in. Immediate resistance for HSI is at 21300, next 21500. On the downside, supports are 21080, next 20850.

KLCI Index still ranging between 1700-1725. This market need to break above 1730 to see a higher trading zone.