Recently, i have got many friends asked me this subject and many of them very worrying by sellng stocks, holding on their property investment. I started this subject and see how well we can discuss this. In general, i am the advocator of no US recession and the impact of this crisis to Malaysia is very minimum.

Too details to explain all but in general, world economy is still growing every where and US economy is indeed hodling well due to this. If exclude housing slump due to inferior credit policy of the past in US, US economy is still doing well esepcially MNC already deep into a global scale. A recession, by far need atleast 3 continuous quarters of downtrend in GDP. Currently what happen in US is only the housing market but not overall.

I also think the coming US election will indeed force the politicians in US to do whatever it can to sustain the growth. May be the dilemma will be more to how to achieve a balance in reducing interest rate but at the same time not over stimulate the commodities inflation due to lower dollar trend.

At the local front, cant even find a reason it will slow down if based on our stock performance, GDP performance, 9MP, good corporate results, general election is coming and many ......

I cant find the reason why many local experts are still saying only high end property is growing but not in general. How about commercial property? How about rising cost of materials?

2-3 weeks ago i read an article published in The Star by a local blogger, and also another real estate agency made statement in The Edge, i am so amazed about his points but i do not agreed and to a certain extend, it will actually given a wrong message to the public. Especially Malaysian are rely a lot on Newspaper and believe in this. No one would think Malaysia property will catch up like Hong Kong and Singapore in near term. But definitely, all should understand the implication from government, from globalization trend, from rising commodities and from urbanization process. The property prices in Malaysia is going to do well. Of course always it depends on the location and type of the property.

Only high end property will do well? I have an example of a retail business lot that invested 2 years ago. Prices increased by almost 50% and still at the uptrend. I have also got a friend invested in a condo at Damansara Perdana, the condo cost around RM 230K and now near RM 300K. How do you explain that mid end property price will face down turn? I am really amazed by those comments and they should be carefully stated that to an average location in certain area? or average of allmid cost housing in Malaysia may face a pull back back.

Show more responsible when a corporate figure, when a newspaper, or when an expert are releasing comments to the market. My call for both stocks an property will do well in 2008. After that, only consider to swtich yourself to bond a portion to house a possible crisis that alwasy come in every year, not 10 years cycle.

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