In Vino Veritas

In wine, the truth. Drunk, people tend to be more honest about everything, their emotions, their thoughts. Inhibitions are loosened and the more relaxed side is brought to the fore. Unfortunately sometimes rash decisions are made which one may regret at some point. Life is complicated huh?

I've always wanted to come back to KL once I was done studying. But with all this politicking going on...I'm not quite so sure its the right thing to do...Home is still home...and I love it dearly. But without a doubt there is trouble brewing, and as the seeds of political unrest begin to flower, the socio-economic impacts it has is undeniable and may make life untenable. I suppose all one can do is wait with patience...and hope.

I read quite an interesting piece just today on saving. Economically, the theory is borrow when times are bad, and save when times are good. Countries like Australia and the UK are pretty much run on debt - hence the credit crunch which is causing a world of pain for everyone. Which brings me to my point. Credit borrowing of any kind is always detrimental in my opinion. It leads us to extend ourselves beyond what we are capable of. Hedonic adaptation is something which we youth succumb to more often than we should. The idea that consuming more makes us happy is a short term view which - while temporarily satisfactory - is financial foolishness. But sometimes I ask myself...what happens if I save as much money as I can, but the rising cost of inflation reduces the value of my money? Would I then have gotten less out of it than I should have? Should I then spend as opposed to save? Upon further reflection, my conclusion is that it totally depends on what we spend on. Hence prudent investment in stable stocks, in line with a good reading of the direction of the market and the patterns its taking is worthwhile spending for. That snazzy car or flashy shirt will wait. Market opportunities are few and far between.
And considering there are many companies which are currently undervalued it seems to me as good an opportunity as any to enter the market. So get saving.