Ok, i admit, i was wrong the last time round, when in one of my post I CLAIMED THAT the oil prices will never drop. MY bad!! Look at the price now, below 50 per barrel? and we are still paying 1.90 per litre? anyway, if u ask me, i will say, 1.92 might be very expensive, but if the price is fixed at 1.90 per litre regardless of how high or low ( how low more can it go ? ) the world price for crude oil is, i think 1.90 will be a fair price. If the cost to 'dig' the oil last time was lets say 40 bucks, those major oil producer might sell it at 80 bucks, but when the economy is good, producers will sell it at a higher price may be 100 120? but one thing tat we shud bear in mind is that the cost of 'digging' is still the same : (
Recently, i read through an article in our newspaper, Saudi King has stated that oil prices now is far too low.. it shud be selling at above 200 per barrel, way far above the current price : ( . tats the claim made, when will it happen? its still a guessing game for all of us.
If u ask me, what was the reason the world crude oil prices fall, i guess, we all know the recent financial crisis, one of wall streets major company declare bankcruptcy and later gave a domino effect to not only tat country but to the whole world. People start to get panic, starting to sell of all their shares , and this is where trouble starts, everyone is selling and here we can imply the simple law of economy, when the supply is more than the demand, prices fall. : )
but if u guys are wondering, if fall also wall streets market fall, why countries like Msia, Singapore, AUstralia, CHina and etc also got affected? Its because our local KLSE market is a trading place.. US is consider the taikor of the world, both financially or even in terms of military power. so when US faces financial problem, of course those investor in that country will start to 'dump' our country's share to get back their cash and later reinvest it in their own country, logic?
this is the time where we say, BIG BARGAIN SALE. blue chips share prices such as IOI COrp, Genting and all those plantation stocks prices fall.. most major public listed company are now undervalued. ( good time for privatization maybe? haha.for cheap company of course).
oops, back to the topic of why crude oil prices fall..hehe.. i am not a pro, so just from my point of view, US is one of the biggest user of crude oil. so when their country is facing such a big financial crisis, people tend to spend money wisely, take note tat fuel prices there is expensive, so maybe people dun tend to go out more often? haha... maybe car pooling to work, or even using public transport. ( nah, their public transport services isnt as 'gud' as ours )
so conclusion? blame US? haha.. just joking bout tat blaming thingy.. but kinda weird right? just because the whole world uses USD $ this allow US to print money everytime they are short of it..
I am not reli sure how this printing money thingy work, but as far as I know, a country prints it's money according to their gold reserve.. not sure bout the rate though, read through bout the rate before but forgotten. dunno how many gram of PURE GOLD = $USD ?? ( peg to US again!)
so, if a third world country wants to print money, others will ask, DO U HAVE THE ENOUGH PURE GOLD bar reserve? can u afford to pay back?
but if US would wanna print money, who the heck would dare ask them tat same question. So when US prints more money than the gold reserved they have, its actually worthless!! but the fact that the whole world is using their currency so no prob, its more like a POST-DATED cek. sort of.. but if one day the whole world doesnt use their currency, than imagine , the money will be worthless.. Remember ur Form 5 Sejarah text book? Duit Pokok Pisang, those use during the Japanese time, too much was printed and the money become ntg but a useless sheet of paper. ( i bought one piece though, since i collect old notes )
Share market we hear ppl talking bout tat almost everyday rite?
the market is just a fascinating thing.. i am soooooooooooo interested in this kind of thingy.. : )
I onceread a book about The ARt of Investing, from the book, it is said that , when everyone is selling, than it is the best time to buy : ) ( dun wanna blog so much bout tat book )One man's meat is another man's poison. while many investor is cursing around because of the sharp fall of their share prices, some is taking gud advantage of this situation..this is where the rich get richer. oops i meant the rich and smart people. when i say smart, doesnt mean smart when u are a successful businessman, but smart investor. Bill Gates, world's richest man, is now no longer the richest man.. His long time pal Warren Buffet has overtake his position, Warren Buffet is one of America famous investor.. recently read a book about him and George Soros.. Warren Buffet moves is always being watch by thousands of investor. Warren Buffet is the kind of person tat will buy undervalue company and will keep it for a long term to get a great return, take GE and Coke as an example..Unlike George Soros, also one famous figure but he is more toward market speculator.. who can forget the BLACK WEDNESDAY, the day he got the nickname, The Man Who Broke The Bank Of England, a guy tat made US$ 1.1 billion when he sold more than 10 billions worth of pound. Our ex pm Mahathir once accused Soro for causing the 1997 Asean Financial Crisis, by buying and later dumping the currency back into the market. Anyway, i read through one of the business papers last month. after the global crisis.. and i read through one article about this particular company. : )since tat day, i started to look at the share price of tat particular company, at that time it was 1.25 and everyone was saying it is the best time to get some of those shares..and later it drop till 0.49!!!my god 0.49!! wat better time it would be to buy that share..i dunno, i just got this kind of intuition..call it luck, call it anything. but who would understand myself more than me myself??? i've just got this kinda of feelings.. and today i check the price again.. , price closes at 0.72 and trading volume was the highest!!!speculation is the cause of that sudden rise? i guess? maybe.. the volumes of trading is just too much!! but players for this share must be very very very careful, why, rumours says Repco Low is playing with it. when u have Repco Low playing with it, becareful, u wouldnt noe what will the share price be , a market manipulator..before this , the trend is selling selling selling,, prices fall from 1.25 ( which is after global crisis price ) before the crisis was about 3? i am not sure bout tat, din pay attention bout tat before crisis.. and u can see the share prices droping below 50 cents but managed to close merely above 50 cents everyday.. someone is obviously trying to keep the share priceabove 50 cents..dare not say it will earn u big bucks, but its a safe bet. WHY? most company these days are simply undervalued!! Look at Gentings shares.. so buying when it is undervalued will always be safe!!reasons?1 ) so cheap dam worth it!!2 ) the company share once reached 3 something dollars.. ( but must wait very long time cause of tis crisis )3 ) at 45 cents, dream on if u are afraid it will drop to 0 cents ( IMPOSSIBLE )4 ) even if it drop till 20 cents, just take it as an investment.. give it another year, in that period of time, u sure get to sell it at the price u bought!! no loss!!5 ) even if it is PRIVATISED!! u can bet that the price u will get paid for each share willbe a little higher than the market price,., ( just a little )Look at astro boss, when he privatised maxis, he paid much more higher than the current price at that time : )p/s wrote this quite long ago but deicided to post today, with adding the latest crude oil prices
But then again, if the government cannot even be trusted to spend our money wisely nor even work towards reducing, if not eliminating the scourge of corruption that plagues this country - what is the point? Hello, when's the next elections again?
pss ; those in purple was copied from one of my lecturer's blog, i reli like the way he wrote tat sentence , especially the line, tat was bolded.
