Financial Preservation: Preservation of our Future in the Hand of God

Where is the best place to preserve our future? It is definitely at the Hand of God. 

Since time immemorial, there is nothing new under the sun.

God creat heaven and earth, 

In other words God creat space and matter, 

What is matter?

If you see matter at the periodic table, it consists of multiple elements.

The most stable elements is Gold, Silver and Platinium. 

Aluminium and Copper are the next versatile elements.

Gold were created from supernova explosion of sun like planet. So, gold is the most stable element.

Platinium is known as white gold. 

Silver is the second most stable elements with many industrial applications.

After silver, copper is one of the most industrial applicable metal for electricity conductance. 

Everything in this world, will be transform from one element to the next.

But, since time immemorial the gold, silver and bronze created since the time of Adam still exist in their elemental form after purification. 

What the chinese, the babylonian and the eqyptians use till today still exist. 

The most unstable element is papernotes currency as it will be transferable from one owner to another and if we try to burn or melt it like other metals, it will just be soot.

Even, if you keep it in a pristine condition, it will be worthless after a hundred years or two lifetime of 50 years each.

Have you ever see any currency that survive a hundred years or a millenium?

No, because currency is basically only an iou debt.

Sooner or later all the currency will disappear in thin air. 

However, Gold, silver and copper will exist far longer than our lifetime. They will exist till the days of tribulations. 

Just remember, Adam Smith coin the theory that "A thing is worth, how much a buyer, willing to pay"

If you see a long term chart of Gold, silver and copper versus any currency for a hundred years you will see that for the long term they were on the upward trajectory.

Why?

This is because Gold, silver and copper were created by God with limited supply and currency were created by man with infinity supply.

So, which one will you choose an asset class created by God or asset class created by the human devil such as papernotes.

Always remember in whatever economic condition it is better to be 20 years early than 1 day late. 

Moral of the story: In the begining, God created both heaven and earth or in scientific terms space and matter. Matter such as metal that was created by God will last forever whilst the work of man will decay and perish.

Be Bless, 

Dr. Lion. 

US remedies for current economic problems is worse than it's cause.

 Our current economic problem is due to massive US dollar printing or quantitative easing leading to cost push inflation.

There are 2 types of inflation which is demand pull inflation and cost push inflation.

Both need different remedies.

Demand pull inflation is because there are too many money chasing too little goods.

While, cost push inflation is due to rising goods price.

Currently, it is due to cost push inflation and not the masses becoming richer which is aka demand pull inflation. 

The real solution is by bringing down food price by subsidising, more food planting or acqriculture activity and more international trade as well as world peace. 

But, the US and worldwide is increasing interest rates which is a remedy for cost push inflation.

Do you think making the masses poorer will solve the issue of higher food price? No matter how poor you are, you need to eat. 

The US is making the masses pay for their mistake of QE which leads to cost push inflation and increase interest rates which will then leads to the masses become poorer and leads to recession sooner or later. 

Remember, how poor we are, we need food, water and electricity.

The US remedy is worse than the cause. We will be in massive inflation and recession soon aka stagflation.

So, our world economy is in limbo.

Now cash is king. 

The solution now is to buy dollar for penny, which will make us richer sooner or later as we have a big buffer or margin of safety no matter what asset class we are in be it stock, crypto, houses or collectibles or what phase of economy we are in. 

As always be bless, 

Dr. Lion.

Asset class for different season.

 Asset class that thrive during different scenario.

1.Growth - stock, house, food, crypto, paper notes, antiques.

2. Recession - cash, foreign currency, usd, yen

3. Malaysia hyperinflation - foreign currency, crypto, gold, house,food.

4. Worldwide hyperinflation - crypto, gold, food, house, Healthcare. 

5. War - weapons, food, clothing, basic necessity, healthcare

The Peril of Investments.

If you were to invest for a long term horizon,

You will be interested to ask,

"Is my investment safe and how much is the return?"

The truth is that there is no safe investment and the return is variable except for government bonds which are relatively safe as it is tied to the local currency.

In the long horizon, our investment is affected adversely by:

1. Political,

2. Economical,

3. Technological or

4. Managerial changes

that would render a good investment in the past worthless.

Therefore, we must be ready for the wind of change.


Moral of the story: The only constant is change itself.


Be Bless,

Dr. Lion

Investment vs Speculation.

There is a great difference between investment and speculation.

In order to know about investment, we must know what is speculation.

Speculation is a gambling process whereby, we need to know the hot stock at the moment and be at the right stock at the right time.

Honestly, I find it to be difficult to be at the right stock at the right time as my trading skill and time factor are not by my side.

Investment, on the other hand, is about finding the unpolished gems and give time for the unpolished gems to be transformed into a diamond as every stock will have its day.

An investor's perspective, the lower the share price, the better it is.

As time is a friend of a good business and enemy of a mediocre.

The time to sell the unpolished gems is when:

1. The reason you buy is not there anymore

2. Changes in the economic or political scenarios or

3. There is another better investment, whereby, we trade for something more valuable.


Moral of the story: Stock is a voting machine for the short term, while, in the long term Stock is a weighing machine.


Be Bless,

Dr. Lion. 

Death of Currency sooner or later

There is no currency that survived beyond a century.

Let the encyclopedia of currency be our judge.

The life span of a currency is around 80 years old.

Why is this so?

This is because currency is printed and controlled by central government.

When the central government is weak or corrupted they will use the printing press to print our currency into oblivion as the printing process is not based on valuation of gold or other tender asset but is based on legal tender of the central government that print it.

That is why currency now is only legal tender in a certain country and not worldwide accepted.

If a certain country economy weaken, they will resort to devaluation or quantitative easing to boost their economy, killing their currency in the process.

Moral of the story is Death of Currency due to government meddling.

Be Bless,

Dr. Lion

Paradigm change of 2050: The new frontier in human development

The human population will reach 9 billion in 2050 from 6 billion in 2020.

Therefore, the population birth rate is 80 million per year from 2020 to 2050 and most of the population growth will be at developing countries in China, India, Africa, and Southeast Asia.

The newborn will definitely consume a lot of resources throughout their lifetime.

The essential resources are clean water, food, places to stay, fresh air, education, transport, health resources, and entertainment.

1. Clean water will become more scarce, making desalination and underground water essential.

2. Food will be the future growth engine as we need more food production to overcome food demand by growing populations with measures such as food tech and proper management of plantation assets. Therefore, whoever control food, control the world.

3. Houses will be more expensive as more families chasing after the finite supply of living space and the compact digital house will be ideal and high in demand.

4. Fresh air is also essential as more air-cond and air-purifier will be utilized with more renewable energy sources.

5. Education will be more expensive and more will be enrolled in fully online courses from prestigious universities.

6. Transportation will be overcome by regulations and mass-transportation such as bullet trains for the regional area and mass rapid transit in the urban area as well as usage of electric and compact cars to reduce space and cost will be exploited.

7. Health resources will be consumed up as more people going after early preventive medication, Traditional Chinese Medicine and living a healthy lifestyle.

8. Entertainment such as home-cinemas, virtual reality video, and interactive video games will become a reality.

So, we should be prepared for the paradigm change for the coming 2050.

Be Bless,

Dr. Lion.