Recently, Malay is experiencing a political turmoil with the resignation of Tun Mahathir followed by a formation of a new government by the opposition & some other political parties. This situation has caused most of us to be on our mobile phone refreshing some online webs & bugging all our friends to get some information on the latest news. Obviously I am one of them. LOL. This type of situation is considered to be not really good for our country especially with the Covid-19 that is also affecting global economics. You may have read that the current Bursa stock price is at it’s lowest since 2011.
What does this mean? Is it an opportunity for all of us or is it bad for us? It really depends on how you really look into this situation. As a voter, it may be disappointing for those who wanted Malaysia Baru vs those who love the old old government. But as investors, is this really a good time for us? How can we capitalize on situation like this for our investment & money?
1. Stay Focus On Your Current Investment
I’m sure most of you are long term investors. In a situation like this, stocks prices are low. This is the best time where you can get good deals in stocks where you can purchase it at lower price. But always remember, as an investor, never put all your eggs into 1 basket & do your study before you invest. If your investments are effected, you may also seek to Dollar Cost Averaging (DCA) your investment.
2. Seek For Opportunity From Within
This may be a good time where you can seek for other investments or stocks that you never planned to invest but with the changes of a new government, those companies may be able to benefit from it. Example : With PAS being part of the new government, how will it affect stocks like Carlsberg or Genting? Companies like Top Glove are also benefiting from Covid-19 situation. Just like lotus grows in muddy water, there will be always opportunity out there for us.
3. Cash Is King
This is important during good times & bad times. Having extra cash in situations like these may help you to purchase something at a good bargain price such as house & stocks. Even flight ticket prices are cheaper now but it is due to Covid-19 not political instability. If you are holding foreign currencies or earn foreign currencies, you are definitely benefiting from this situation with the weakened MYR.
4. Seek For Other Potential Investments
Due to Trade War followed by Covid-19 situation, it seems that Gold price is increasing again. If you invested in Gold many years ago & still investing in it, you definitely are celebrating right now. For those who are investing in Malaysia stocks, you may also seek out to invest in other investments to lower your investment risk. Fixed Deposits or Mutual Fund are definitely good options if you are looking to invest in other investments with limited knowledge.
I personally am quite disappointed with the political situation in our country. That does not mean that I am standing on either 1 political parties. It’s just my opinion towards some political leaders that are going against our votes as Malaysian. We voted for them as a united party and not as an individual representative of our area. Those that are hopping around each parties are doing this for their personal reasons & they have betrayed our trust as voters. But it is pointless to say anything right now.
Covid-19 situation also has gotten worse. Remember to wash your hands & avoid going to crowded places if possible. Stay hydrated & seek medical care immediately if you feel unwell. As for our money & investments, the best thing we can do right now is to capitalize from the current situation.