Friday, July 11, 2008

The Economy, The Politics and The Power

I have a few unit trust investors who contacted me after they received an anonymous email from CIMB Group unofficial source, advising them to sell off all their units in the trust funds before the economy crash soon. Why the heck would you sell your units when the price is below what you bought? The way to deal with unit trust and shares, is to buy at low price and sell at high price. But normally, when the market trend is going down, people start to panic and start wondering whether their money will be gone with the wind. This is my standard answer:
"Investing in unit trust is for medium to long term, at least 3 to 5 years. Of course the economy will be cyclical, and so we have to endure the market's up and down. We are not playing shares".
Besides, this is infact a good time to buy more units since the unit price is lower, so you'll get more units. But I guess the psychological effect of seeing the market goes down, far outweighs all logic given by the experts.

Let's talk about our economy condition a little bit. Here is a quote from The Edge Financial Daily:

The toxic combination of political uncertainties, soaring inflation and weaker economic growth has led to a downward revisions on the outlook of the Kuala Lumpur Composite Index (KLCI) for the second half (2H). The confluence of negative news has prompted at least one foreign research house to forecast a year-end target for the KLCI to be less than psychological 1,000 point mark.

Yup. Perhaps the once in 10 years downturn has reached our door. Coupled that with power transition and power struggle. Who's right and who's wrong - there's no way of telling. Sometimes I feel that DSAI is right. Sometimes I feel that DSAI is wrong. In discussions with fellow comrades, they also agree that it is difficult to judge the righteousness of a politician. Isn't it great to be a powerful politician, where people can't really differentiate your true character.

I remember in my Political Science class, once the lecturer asked what is the most important thing people want to have in this world. We gave myriad answers, but none was right. Ultimately, we all gave up. He said the answer is "POWER". From the beginning of men, men will always struggle to have the most power. Rightly so, those who have power can command anything in life. You are nothing without power. That's why sometimes people just wish to have super powers. But I also remember a quote from the movie "Spiderman":
With great power, comes great responsibility.

Isn't it just great. Power does not come stand alone. Per Se. Power comes with responsibility. But how many equate the two? And how many take the former and leave the latter? It's happening everywhere around us. In office, in our polticial constituent and in our house. Power must come with responsibility. And in Islam, each one of us will be asked of our leadership in guiding those under us. The more people we aspire to lead, the heavier the responsibility, and I guess the longer time it takes to do your "hisab". Fikir-fikirkan.

The toxic combination so far is getting murkier and murkier. For unit trust investors, I suggest you hold on to your units or invest more should you have extra fund for your own long term portfolio building. Never sell at lower price.

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