KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
Remember the days when the Federal Reserve and central banks slashed interest rates and engaged in quantitative easing to revive economies after the global financial crisis? The prevailing concern was that interest rates would remain perpetually low. The Fed appeared anxious as the world’s largest economy faced near-zero inflation, potential "double-dip" recessions, and sluggish consumer spending.
Fast forward to today, and the narrative has reversed. Now, the markets worry about perpetually high interest rates. It seems paradoxical, doesn’t it? Previously, Wall Street celebrated hints of rate hikes. Now, even the suggestion of a rate increase provokes negative reactions.
But here’s the crucial question: Does fretting over interest rates truly matter? Should we even care?
Key Takeaways
Focus on Controllables: Interest rates are beyond our control. Instead, focus on factors you can manage, such as your savings rate, investment choices, and continuous learning.
Consistency is Crucial: Investment success stems from consistently executing a few key practices well. Save aggressively, invest regularly, and continually enhance your knowledge.
Maintain a Long-Term Perspective: Markets will experience fluctuations. Staying committed to your long-term goals and avoiding distractions from short-term market volatility is vital.
What Should Investors Do? Remember to INVEST:
I - Increase Your Savings: The more you save, the more you can invest. Prioritize saving each month.
N - Never Stop Investing: Avoid waiting for the “perfect” time to invest. Regular, even small, investments can accumulate substantial wealth over time.
V - Value Knowledge: Invest time in learning about investing. Read books, engage with like-minded investors, and consider programs like the CFA to deepen your understanding.
E - Enjoy the Process: Investing shouldn’t be all stress and worry. Engage in activities you enjoy while allowing your investments to grow in the background.
S - Stay Focused on Long-Term Goals: Markets will fluctuate. Concentrate on your long-term objectives and resist distractions from short-term market noise.
T - Trust the Process: Believe in your strategy and stick to it. Consistent efforts will yield positive results over time.
Conclusion
Worrying about interest rates is akin to worrying about the weather – it’s uncontrollable and ever-changing. Instead, focus on what you can control: save diligently, invest consistently, and keep learning. These are the true keys to successful investing. By doing so, you’ll be better equipped to navigate any market conditions and achieve your financial goals.
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