• AIG lost $61.7 billion in Q4 ‘08
• Time Warner lost $54.2 billion in Q1 ‘02
• Time Warner lost $44.7 billion in Q4 ‘02
• GM lost $38.6 billion in Q3 ‘07
• Conoco Phillips lost $31.8 billion in Q4 ‘08
• Fannie Mae lost $29.4 billion in Q3 ‘08
• Fannie Mae lost $25.2 billion in Q4 ‘08
• AIG lost $24.5 billion in Q3 ‘08
• Wachovia lost $23.7 billion in Q3 ‘08
• Fannie Mae lost $23.2 billion in Q1 ‘09
• GM lost $21 billion in Q1 ‘92
• Fannie Mae lost $19.8 billion in Q3 ‘09
• Nortel Networks lost $19.4 billion in Q2 ‘01
• BP lost $17 billion in Q2 ‘10
• UAL Corp. lost $16.9 billion in Q4 ‘05
• Fannie Mae lost $16.3 billion in Q4 ‘09
• Time Warner lost $16 billion in Q4 ‘08
• Merrill Lynch lost $15.3 billion in Q4 ‘08
• GM lost $15.5 billion in Q2 ‘08
• Fannie Mae lost $14.8 billion in Q2 ‘09
• Freeport-McMoRan lost $13.9 billion in Q4 ‘08
• AT&T lost $12.7 billion in Q2 ‘02
• Fannie Mae lost $11.5 billion in Q1 ‘10
• UBS lost $11 billion in Q1 ‘08
• Citigroup lost $9.8 billion in Q4 ‘07
• Merrill Lynch lost $9.8 billion in Q4 ‘07
• GM lost $9.6 billion in Q4 ‘08
• UBS lost $8.9 billion in Q4 ‘07
• Wachovia lost $8.9 billion in Q2 ‘08
• Ford lost $8.7 billion in Q2 ‘08
• Citigroup lost $8.3 billion in Q4 ‘08
• IMB lost $8 billion in Q2 ‘93
• Citigroup lost $7.6 billion in Q4 ‘09
• Symantec lost $6.8 billion in Q4 ‘08
• Devon Energy lost $6.8 billion in Q4 ‘08
• News Corp lost $6.4 billion in Q4 ‘08
• Regions Financial lost $6.2 billion in Q4 ‘08

Source :businessinsider.com

Original Source:

Bankrate.com
6 deadly investing mistakes
Friday September 5, 6:00 am ET
William Lynott

These are scary times for anyone trying to build or preserve their retirement accounts. Today’s roller coaster ride of economic ups and downs — with swings in the Dow Jones average of 500 points or more in just a few days — is enough to churn stomachs in all but the most steely nerved passengers.

Is this simply another predictable, even healthy, correction in a long-term bull market? Or are we poised for an investor meltdown?

No one knows for sure, of course. Even a modern-day Nostradamus couldn’t tell us what’s going to happen tomorrow. But no matter what, avoiding these six costly investment mistakes will help you to keep your head above today’s troubled waters.

Stick with fundamentals.

Most financial professionals believe the current slump is a predictable — and even healthy — correction in the long-term bull market. Other forecasters are far more gloomy. Either way, it’s critical to avoid these potentially deadly mistakes.

6 deadly investing mistakes:

• Panicking over market fluctuations
• Reacting to daily economic reports
• Turning off your buying during a downturn
• Trying to time the market
• Not maintaining appropriate asset allocation
• Abandoning your investment strategy

Mistake No. 1: Panicking over market fluctuations
“Fluctuations in the market are a natural part of our economic cycle,” says Stacy Francis, Certified Financial Planner and founder of Francis Financial in New York. “When the market is in a downturn, it may seem logical to cash out and go home, but before you do that you may want to think about your long-term goals for that money.”

Market downturns, even recessions, are relatively common occurrences in a free economy. A recession is defined as a decline in Gross Domestic Product, or GDP, for at least two consecutive quarters, making it rather easy for us to slip into one. But they have become shorter duration and less severe than they were in the past.

According to studies by Ned Davis Research, since World War II, the average expansion in our economy has lasted 57 months, while the average recession has lasted 10 months. In the past 20 years, according to the study, we haven’t had a recession last longer than eight months.

All of this suggests the rules of the game of profitable investing remain pretty much the same. During the current bumpy ride, investor concerns are focused on such things as the effects of the subprime mortgage crisis, the price of oil and the threat of a recession. While any of these may seem of formidable proportion, they are probably no worse than the concerns that bothered investors in the 1960s or the 1980s, or any other period.

“Many people sell low and buy high because emotion drives their investment decisions,” says Lisa Featherngill, CPA/PFS, member American Institute of Certified Public Accountants. “Remember, you haven’t lost money until you actually sell the security.

“If you decide to sell, buy something else right away. Studies have shown that your investment returns will suffer dramatically if you miss the best days of the market. Nobody knows when the best days will occur, so stay invested.”

In short, investing for a financially healthy retirement still calls for the same kind of common-sense approach that has worked so well in the past. Most experts predict that the long-term future will most likely mirror the long-term past. That is, a steady pattern of economic growth with periods of expansions, recessions and downturns in the market.

Mistake No. 2: Reacting to daily economic reports
“In an effort to sell newspapers and air time, the media trains investors to look out for the next economic number of the day,” says Jordan Kimmel, managing director at Magnet Investment Group in Randolph, N.J. “Whether it’s employment numbers, capacity utilization or inflation statistics, there is always a number of the day to tempt investors into overreacting. In reality it is nonsensical to react to daily economic reports. No investment strategy is better than identifying superior companies and holding them while letting your money compound over time.”

Mistake No. 3: Turning off your buying during a downturn
Some of the world’s most successful investors made their fortunes by buying when everyone else was selling. But that’s not easy to do. Investing steadily during market downturns may be too much of a psychological adventure for most of us, but there is a system that enables almost anyone to take advantage of those tempting buying opportunities. It’s called dollar-cost averaging.

“Dollar-cost averaging calls for spending a fixed dollar amount each month or quarter on a specific investment or part of a portfolio, regardless of the ups and downs of the share prices,” says Francis. “By following this pattern consistently, you will purchase more shares when prices are low and fewer shares when prices are high.”
For example, if you decide to spend $500 each month on purchasing shares, you will be able to buy only a few shares if the price is $100 per share. However, if the price goes down to $50 the next month, the same dollar investment will buy twice as many shares.

“By making regular and consistent purchases over a longer period of time, your cost basis — the total amount you pay for a security — is spread out. That provides a cushion against normal market price fluctuations,” says Francis.

“Dollar-cost averaging is a time-proven and effective way to minimize the effects of emotion in financial management,” says Kimmel.

Mistake No. 4: Trying to time the market
“It’s better to invest regularly, without regard for the general condition of the economy or the direction of the stock market,” says Darrell J. Canby, CPA/CFP and president of Canby Financial Advisors, in Natick, Mass.

“Timing the market, trying to determine the best time to buy specific stocks, rarely works,” he says. “You might get lucky once in a while, but your luck isn’t likely to last.”

Rick Willeford, M.B.A. and CPA/CFP, in Atlanta, says simply, “Market timing and day trading are for suckers. The financial press makes money from advertising, and they do that by keeping you breathlessly chasing the latest tip or fad. They make money whether you win or lose.”

Waiting for stocks to hit the “bottom” before you buy or hit the “top” before you sell has long since proven to be a loser’s game for investors. Select the stocks or mutual funds that you buy only on the basis of sound fundamentals.

Mistake No. 5: Not maintaining an appropriate asset allocation
If there is one point that virtually all financial advisers agree on, it’s the critical need for you to maintain an asset allocation suitable to your personal circumstances. Asset allocation refers to the process of dividing your investable assets among stocks, bonds and cash.

The diversification mix that is right for you at a given point in your life will depend on such things as your age and your tolerance for risk.

If your retirement is years away, most experts recommend relatively heavy investments in equities, 60 percent or more of your total portfolio. “However, if your time horizon is less than three years,” says Certified Financial Planner Greg Womack from Edmond, Okla., “stay in fixed investments like CDs, short-term bonds and money markets.”

Once you allocate your assets in the manner right for your circumstances, it’s important to rebalance at least once a year. As the price of equities goes up or down, the ratio you have established will change. If the value of your equities has risen, you may want to sell off some of them to restore your original ratios. If their value has dropped, moving more cash into equities may be appropriate.

“If your portfolio is largely within an IRA or other retirement plan, consider rebalancing every quarter,” says Womack. “If it is regular, taxable money, consider at least annually, perhaps more during extremely volatile periods. For a rebalancing strategy to work, you must own assets that don’t react the same way over differing market conditions.”

Mistake No. 6: Abandoning your investment strategy
“Creating a plan such as dollar-cost averaging and sticking with it under all market conditions is the way to maximize your returns,” says Kimmel. “Human nature makes it difficult for the average investor to stick to an investment strategy unaffected by emotion. Sometimes it’s fear; sometimes it’s pure greed. Either way, allowing emotions to affect your investing decisions is certain to damage your financial future.”

Womack agrees:
“It’s human nature to chase hot sectors that have already made a significant move,” he says. “It’s also natural to panic and sell-out when everyone else is doing the same.”

While it may be the natural thing to do, it’s not the smart thing, according to Womack. “It’s important to have an investment strategy and stick to it. Remember: If the headlines are full of it and everyone else is doing it, you’re probably too late.”

There is, of course, much more to the maintenance of an investment portfolio that may well help you sleep during these scary investment times. However, sticking with these common-sense fundamentals will go a long way toward achieving that end.

In fact, U.S. is now being threatened by economy recession as well as high inflation(Note: U.S. might already in a recession). As a result, their demands for goods & services will definitely decline. In such situation, Malaysia can never escape from it’s impact. Because this will somehow affects the export of Malaysia(Note: US is one of the largest export markets for Malaysia) and hence impacts our economy in general.

However, some of those economic and political “experts” in Malaysia always clung to the notion that “Our local and regional demands is still strong enough to neutralize the impact of recession in U.S.”. Anyway, such “fairy tale” seems had already come to an end. This is simply because the whole world including Malaysia are now facing food crisis and fuel price hikes. As a consequence, the people including Malaysian had no choice but to face the high inflation in their daily life.

Apart from rising in prices of the imported rice(i.e. the main food for Asian) by around 100%, the latest news was the Government of Malaysia had announced an increase in petrol price by 41% and diesel price by 63% in which had started immediately on 5th June 2008. This is the largest increment in fuel prices in the history of Malaysia. The effects had already started to kick in. E.g. rising in the transportation fees, foods prices & etc. As a result, the cost of living must go up and the purchasing power of consumers must go down.

Once the purchasing power of consumers had declined, how far the statement sounds “Our local and regional demands is still strong enough to neutralize the impact of recession in U.S.” will still be true? Obviously, such statement is really ridiculous in the current context. With shrinking wallet, most of the people will more likely to keep just those necessities and sacrifice those unnecessary expenses(E.g. entertainments, trips, investments, shoppings & etc).

As a consequence, the sales made by the businessmen who owned factories, shops and etc will also decreased at the end. While the operational costs are rising but the sales and profits are dropping, the businessmen may start thinking of cutting costs by reducing the labours and so on. Some might even face bankruptcy. E.g. the airline companies. If such situation happened, the soaring unemployment will further deteriorates the economy. Therefore, if we don’t handle such situation carefully, then a disastrous recession will be awaiting us.

Next, what would be the decision of the central bank in the monetary policy that applied to overcome the current crisis? While the operating costs & the inflation rate keeps climbing; But the GDP expected to be slowed down. It’s really a tough decision for the Bank Negara(i.e. the Central Bank of Malaysia) to decide whether to increase the interest rate or keep it unchanged. By increasing the interest rate, the costs in doing any business will definitely increase. Furthermore, this would also cause the people to be more likely to just put their money into the fixed deposit account. I’m sure that such situation will not be favored by most of the businessmen.

So, should the central bank just keep the interest rate unchanged? Okay, let’s say the central bank decided to keep the interest rate unchanged; In your mind, what’s the situation that might happen instead? I think most of the banks and financial institutions will started to tighten their lending procedures. Because they are facing the risk in which the interests earned from the lending process is unable to cover the increasing inflation. As a result, the companies can’t borrow money as easily and hence slow down the activities of economy. Anyway, from my point of view, a moderate increase(i.e. around 0.25%) in the interest rate would be a better choice for the current context.

In fact, such type of inflation isn’t mainly caused by the consumers in the markets. But it had been caused by the speculators(i.e. those with plenty of fund) who trying to make profits from their speculations in the crude oil and other commodities like gold & etc. As a result, such speculators making huge money from it but billions of others suffering from the fuel and food price hikes. Of course, those have been exploiting the resources by simply declaring wars on others should be blamed too.

Sometime, the investors might think that a mutual fund with higher unit price is too expensive and may be “overvalued”. Therefore, they tend to look for or buy those funds with lower unit price and hope that such fund’s unit price can later rise up to a level that had been achieved right now by those funds with higher unit prices. However, if you’ve already get the meaning delivered from the 1st paragraph, then you must know that the concepts of “undervalued” and “overvalued” used for a particular share in stocks market should never be applied in unit trusts or mutual funds. Again, while an individual share can be undervalued or overvalued; such situation is quite impossible to happen in unit trusts. This is simply because a fund with a higher unit price could also holding a basket of undervalued stocks in it’s portfolio while the fund with lower NAV could be invested in a basket of fully or even over valued shares.

During the bull market period, assume that an equity fund with NAV = $1.00 before had raised up to $1.50. Mean while, another fund with initially lower unit price, says NAV = $0.50 might now reached $0.75. Finally, both funds will bring investors the same return rates i.e. 50%. Hence, the unit price shouldn’t be a main concern that determines which funds to be picked.

In fact, during a bull market period, there will be many existing funds performs well and generate an attractive returns and hence their NAVs will go high and even higher. At the same time, there must be a lot of new equity funds being launched during this period to attract the investors. One of the main reason that made the fund institutions to launch a series of new funds during such period is simply because that is a golden period for them to make their businesses.At this period, everyone is “feeling good” and optimistic over their future. Therefore, the businesses are much easier to be dealed during this period.

Apart from this, the unit price of these newly launched funds must be relatively much lower than the existing funds those had been rallying during the bull period. Moreover, the fund institutions would also offer free units or discount in the selling price to those who invested in these new funds. This might bring an illusion to the people that now is a “golden chance” for them to invest in these new funds with such lower unit price.

Anyway, there must always be a bear awaiting for us after the bull rallies too high and long. Therefore, most of the equity funds will now start to move towards lower unit prices in a downtrend market. To make matter worse, a series of redemptions(especially those with huge amounts) that would occur during such period will cause the unit prices of funds to go even lower. As a result, those equity funds in which have just been launched during last bull period will now suffer the most and their unit price will move from the lower to even lower. All in all, when you start looking for any fund to be invested in your future, unit price doesn’t matter.

At an emergency meeting of the Citi board Sunday, the nation’s largest bank announced Prince’s widely expected departure, but also estimated it would take additional losses of $8 billion to $11 billion. In the third quarter, it already took a hit of $6.5 billion in asset mark-downs and other credit-related losses.

Meanwhile, the company remains entrenched in a mire of off-the-books investment vehicles funded by risky debt. Citigroup may need to take the fall for them if they fail.

And Citigroup’s not alone in its debt problems. When borrowers with poor credit stopped paying their mortgages, many banks not only had to take losses on those subprime mortgages, they also saw instruments in their portfolios backed by mortgages plummet in value. No one knows how much longer home prices will keep slumping, and whether problems related to the housing market will start affecting other types of consumer debt.

Also to be seen is how much longer the credit markets will stay tight, and if the currently strong portions of the economy will be hampered by banks’ inability to make loans.

By Madlen Read, AP Business Writer
Source: Yahoo! Finance

For e.g., if you have put your $100,000.00 into an investment. And you estimate that it will give you about 8% of the annual return rate. So, the question here is “How long it takes for making your invested $100,000.00 to be $200,000.00?” You may now intend to take out a scientific or financial calculator for getting the answer. But if you know about the Rule of 72, then you should be able to get the correct answer in just few seconds even without a calculator.

As I mentioned above, Rule of 72 is simple but powerful. So, the answer is quite strait forward, 72 / 8 = 9 years. That means you will need 9 years for making your $100,000.00 to be $200,000.00. How about when the annual return rate is 10%? Indeed, it’s even easier to get the correct answer. The answer is 72 / 10 = 7.2 years.

The following table estimates the number of years to double your money by applying Rule of 72.

Note: The rate of Interest or Return that corresponds to each type of Investment is based on the estimation and circumstance in Malaysia.

As you can see from the table above, you need 36 years to double your money in a Saving Account!!! While Fixed Deposit account needs 18 years to do it!! This is absolutely unable to cope with the annual inflation rate. In other words, your money in Saving or Fixed Deposit Account is depreciating over the years. Hence, you should never “rent” all of your money to bank when the rates given by bank is relatively low.

The major stocks of US fell sharply on Friday, The Dow, S&P 500, and Nasdaq tumbled 2.4% on average. The Dow Jones industrial average down more than 280 points after some bad news emerged from the market regarding the credit crunch and the rise of US unemployment rate in July.

The fears of investors regarding the crisis of subprime mortgages going worse after American Home Mortgage (AHM 0.69 -0.75) said it was shuttering operations by laying off most of its 7,000 staffers. To make matter worse, Countrywide Financial (CFC 25.00 -1.77) showed that credit default swap spreads widened by nearly 100 basis points.

In fact, there is now too much uncertainty with regard to the credit markets and how the situation will ultimately settle. Mean while, what we can be sure is the fact in which financial institutions will continue to tighten their lending procedures. As a result, people and companies can’t borrow money as easily. Such situations will definitely affect and slow down the activities of economy.

About the Asian stocks, most of the Asian stocks suffered from this transaction week by stumbling about 2-3% of their market value. There is no denying that most of the investors are now getting worries on the US subprime mortgage crisis after the fallout of the sell-down on regional markets recently. They are now more likely to adopt a wait-and-see strategy.

Asian stocks would probably continue struggling and tumbling when the markets start their transactions on next week. This is due to the bad news emerged from US market on Friday and the negative sentiments in which surrounding the markets. In Malaysia, there will be another tough challenge for the KLCI (closed at 1335.42 on Friday) to maintain above 1300 points level after failing to advance to 1400 points by the end of July.

However, there are some market’s analysts trust that – Malaysia is a safe haven in the subprime storm. They supported their statement by the stronger growth in the domestic economy would likely be achieved with government’s policies to push up the local economy. Yep! Malaysia is a safe haven; but the condition is that US subprime mortgage crisis won’t get worse in the future. Otherwise, there is no safe haven in Malaysia even in the world’s markets.

As shown in the chart above, US is one of the largest export markets for Malaysia. It comprised about 18.8% of the total exports for Malaysia in year 2006. If US subprime mortgage crisis getting worse in the future, there must be a bad impact to the export of Malaysia. As a result, the domestic economy would be slowed down and the unemployment rate may rise too.

Most of the Asian stock markets tumbled on Friday due to the fears of global credit crunch and the US market plunge overnight(i.e. on thursday). In Malaysia, KLCI was unable to be exempted from it too by dropping -26.12(i.e. -1.89%) to 1355.38.

To make matter worse, Wall Street extended its steep decline Friday, propelling the Dow Jones industrials down more than 500 points over two days after investors gave in to mounting concerns that borrowing costs would climb for both companies and homeowners. On Friday, the Dow fell 208.10, or 1.54 percent, to 13,265.47, with nearly 140 points of that loss coming in the final half-hour of trading. For the week, the index fell more than 585 points, or 4.23 percent. The week’s point decline was the worst in five years, while the percentage decline was the largest since late March 2003.

As a consequence, we expect that most of the Asian stocks will continue struggling and tumbling when the markets start their transactions on next week. Hence, investors should now be getting more cautious on their transactions that would be made next week. Although it would be now a good chance for those risks-taking investors to buy low and waiting for rebounding. However, if the Wall Street extended its steep decline on next week, the things will be going to be worse due to the market panic.

I think most of the investors like fund’s distributions/devidends. Sincerely, I would like it too. Because only the funds with good performance can make the distributions to it’s unit’s holders (based on rules). That means distributions will some how hints that you are investing in a fund with good performance. But how far that you will really be benefial from it?

Most of investors think that a distribution is something like a “bonus” from the fund invested. But this is exactly wrong in the sense that your fund’s market value is still the same after the distribution. On the other hand, some Unit Trust Agents have been over emphasized on the “more units” that you will gain from the distribution without explaining to their investors that the Fund’s NAV (i.e. Net Asset Values) will also drops by the same amount, which ends up with the same market value. How does it happens?

For example, you had invested in a fund ABC and hold about 5000 units. On 21st June 2006, the NAV per unit for this fund ABC is RM1.00. That means your market value is now RM5000 (i.e. 5000 units x RM1.00). Lets say that the fund’s institution had declared a distribution of 10 cents on 21st June 2006 for fund ABC. This will make you get an extra of 555.55 units, that means you are now have about 5555.55 (i.e. 5000 units/90 cents) instead of 5000 units. Ok, as you seeing from this stage, this is really good to the investors in the sense that the total units held had been increased from 5000 units to 5555.55 units. However, you should not too happy about the increment of the units held. Because the NAV per unit for this fund ABC will also drop at the same time to RM0.90. As a result, your market values of fund ABC will be still the same, i.e. 5555.55 units x RM0.90 = RM5000. Hence, there is no distinct advantage that you would get from the fund’s distribution!

I hope that you will now have a clearer picture regarding the distributions of unit trust’s fund. As my advice, you should know what is the involving rules and tricks first, before involving in any investment. This is akin to you must know the rules of game before start to play the game.

Basically, “needs” refers to those things required for surviving. While “wants” refers to something that can improve our life quality(Not required for surviving). But, “How far that you are able to differentiate between wants and needs in your real life?” Once upon a time, there were a lot of people who queued up since 6am morning or even earlier for buying the “limited edition” Hello Kitty dolls. Hence, I dare not to say that the Hello Kitty dolls wasn’t a need for them(Even though I know that we won’t die without the Hello Kitty dolls).

There is no denying that all of us are now living in an era that full of temptations or “traps” set by the businessmen. Hence, the costs of living are now getting higher and higher. Most of the time, you may try your best in finding more sources of income, but never know how to “protect” your money. Anyway, “If You Don’t Know How To Take Care Of Your Money, Some Body Else(i.e. the businessmen) Will Do”.

Actually, knowing how to differentiate and manage your “needs” and “wants” in the daily life is as crucial as knowing how to manage a soccer team during a match. A great coach should know that they need a win, and they want to score more goals. There is no point for scoring 3 goals but losing the match by 3:4 at the end. Hence, please bear in mind that a good soccer team does not necessary be a team that can score many goals. But, it must be a team in which can win many matches. Think about it!

From the graph shown above, we can see that was just a narrow increment on friday compared with those relatively much larger increments on tuesday(6-Mar-07), wednesday(7-Mar-07) and thursday(8-Mar-07). That means most of the investors had started to worry about the market’s adjustment that would happen anytime and took a wait-and-see stance for the time being. Hence, investors are advised to be more aware of this sentiment. All in all, there were most of the market analysts expect that profit taking corrections should arise in this week.

As you can see from the graph above, KLCI had dropped 162.18 points within 5 transacton days. Analysts said global stocks fall reflect underling concern that the U.S. and Chinese economies will turn weaker. Besides, Japan’s yen expected to continue going high against the dollar in which may caused so called yen “carry trades” and hurt the liquidity of the market. Hence, investors are advised not to enter the stock markets now and should take a wait-and-see stance for the time being.

All in all, the market will need at least one month to see a stock rebound as the investors need time to regain their confidence against their markets.

• Nikkei - down 235.58 points, -1.35%
• Taiwan - down 7.90 points, -0.1%
• Shanghai - up 34.34 points, +1.23%
• Hang Seng - up 95.41 points, +0.49%
• STI - down 13.84 points, -0.45%
• KLCI - down 16.23 points, -1.37%

Within the 5 transaction days in last week, about RM101.37 billions of wealth from KLSE had gone at a glance. In overall, KLCI had droped 120.17 points in one week time! And KLSE ends the whole week’s transactions with KLCI closed at 1164.68 on friday. There following are several main reasons that had caused the KLCI dropped over last week:

• Investors worried about China’s economic boom in which would badly affect the global economy.
• There were concerns about actions likely to be taken by China to curb its hot economy & money inflows.
• Subsequently, the Stocks in China dropped drastically by 9%.
• This had caused the anxiety among the investors in the regional markets like Hong Kong, Japan and Southeast Asia. As a result, all of these markets dropped dracstically too.
• Such news had badly affected the stock markets of United States and Europes in which starts their transaction day after Asia. As a result, all of these markets dropped dracstically too.
• Other than the above reasons, KLCI had also been affected by some local sentiments. Some investors consider KLSE had reached “overheat” or “overbought” level. Such situation had been more obvious after KLSE unbelievably breaks several new records(i.e. highest transactions volume, KLCI reached the highest level in 13years & etc.) after Chinese New Year’s holiday(i.e. from 21st - 23rd, February).
• “T+3″ sentiments in which brought to speculations.

Capital control is the monetary policy device that a country government (ie Sovereign power) uses to regulate the flow of investment-oriented money into and out of a country or currency.