MONEY MASTER

It is difficult to see oil recovering in the near term despite the investment in Phillips66 by Warren Buffett . The oversupply doesn't seem to deter anyone from going into oil business. With the economic sanctions lifted , Iran is ready to get back into oil business and Bloomberg reported chief analyst at CMC Markets in Sydney saying by phone,  “There is ongoing negative pressure on oil prices from oversupply." "Iran is not new, but we’ve arrived now at the point where sanctions have been removed and it’s going to be a key focus for the markets over coming weeks. The question is how much supply can come online in the short-term.” The Persian Gulf nation will only be able to increase oil production by 100,000 barrels a day, or 3.7 percent, a month after sanctions are lifted and by 400,000 in six months, according to the median estimate of 12 analysts and economists surveyed by Bloomberg. Iran is the fifth biggest OPEC producer. Saudi Oil Minister Al-Naimi dec...

If you think that China's stock market is scary, it's time to look at its' mountain debt.  $28 trillion of credit bubble with the economy growing at its' slowest pace in 25 years, I wonder....JUST HOW BIG THE PROBLEM REALLY IS. And China's inconsistent policy and direction under President Xi Jinping and Premier Li Keqiang...question marks are everywhere...whether they are for financial sector reform and shifting their $10 trillion-plus economy from one powered by investment and exports to one more focused on consumption and services or not. We all know what happened as 2016 kick off with one of the greatest nightmare in the history of the stock market. And the yuan currency...it's crazy to talk about it. But the biggest problem perhaps is the question of how the Chinese officials will keep the economy growing to repay past obligations, without resorting to a fresh pick-up in debt to fund more stimulus. It was China’s reliance on credit-fueled growth in the...

I just posted about how the nightmare continues for the oil & gas industry in 2016 as the oil price continues to fall but I didn't expect it to drop like this. Looking at the dynamics, looking at the charts...it's just a free fall. Oil price free fall Oil dropped below $30 a barrel in New York for the first time in 12 years on concern that turmoil in China’s markets will curb fuel demand. West Texas Intermediate crude tumbled to the lowest since December 2003. Concerns that China’s economic growth may slow has soured investors on the prospects for a quick recovery, turning hedge funds the least bullish in five years. A rapid appreciation of the U.S. dollar may send Brent oil to as low as $20 a barrel, Morgan Stanley said. A SHORT HISTORY ON OIL PRICE Between 2010 and 2014, oil demand was soaring around the world, as countries recovered from the financial crisis but the supply was never able to keep up.  Many older oil fields were stagnating. Conflicts ...

The other day, I couldn't contain myself after reading of another huge loss by Malaysia Airlines (MAS) and thus blogged about the problem with MAS , which is mainly down to mismanagement and the lack of serious and fair competition in the country. Well, my frustration was shared by AirAsia boss, Tony Fernandes, who tweeted,  "I wonder if it's fair that Malaysia Airlines can lose so much money and protect its market share. Can only do that with taxpayers money." I couldn't helped but to agree...while external factors such as the increase of crude oil and other factors could contribute to this, MAS could at least show some improvement, which is hardly reflected on the financial statement and their balance sheet.  A bit of history of MAS could tell us a clearer picture of the direction of the Malaysia airline company.  Prior to the Asian Financial Crisis in 1997  MAS had recorded losses as much as RM260 million. This was after their record...

Recently when I discussed setting a financial goal with some friends, and one of them talking about reaching personal net worth more than six times from our current annual income in another four years. Well, at first I thought reaching that kind of personal net worth is quite impossible, but after doing some calculation I believe reaching personal net worth of six times our annual income is possible, at least reaching closer to that amount. First, we must realize that it is not possible to save 100% of your annual income. We have expenses, loan and many more which will takes up huge percentage of the annual income, unless of course, we have very low amount of expenses and loan. Even then, we cannot deny that we are not going to save 100% of our annual income, else how are we going to survive in this world where everything needs money? Back to the real issue, how I suddenly come to the conclusion that the financial goal is achievable, at least for me, but at one condition, which is I ...

Nowadays, most fresh graduates will be burden with debts, even the moment they stepped in the varsity world. I'm quite positive that those not coming from a well to do family will need to get student loan or education loan. Students from Malaysia can apply for this student loan or education loan from a government body, PTPTN. When I graduated three years ago, I directly have to start my payment for the education loan. The terms and conditions of the loan is to start the payment 6 months after I graduated. This applies to all the university students getting student loan from this PTPTN - which means that we have to get a job within 6 months after graduated. Well, for those getting jobs within the first six months after graduation, how many of them are actually paying back their student loan? I believe majority of them are not paying or just paid maybe once or twice the installment. Not that I want to criticize or condemn anyone, but I do believe we need to pay back this student loa...