Should I Increase My Investment Leverage?

Posted by Kris | Wednesday, August 22, 2012 | 2 comments »


Over the long weekend holidays, I been thinking on whether to increase the percentage of my leverage to increase my total investments holdings.  

From my previous posts, http://www.knowthymoney.com/2011/11/poll-total-property-debt-versus-annual.html , It seems that my leverage is still very low compared to the respondents.  Even though the number of respondents are small, (alot of readers are shy..lol), it is roughly the multiple that I had expected on the back of my mind. Well, the poll result was like ~9 months ago though. But i think the number would not be reduced or increased too much.

Here are the factors that I am considering:

1. Economy seems to be a slowdown again as more companies are tightening the hiring and capital spending. (At least in my industry)

2. I saw in the news today that the Hari Raya related businesses is not so brisk up to the point that the traders had to ask DBKL to extend their licenses to continue setting up their stalls. Furthermore, they had to do a firesale of their Raya cookies and clothes to reduce their inventories even though Raya has entered the 4th day.

3. There is a certain amount of uncertainties since the General election will be held soon in the future. (Date unknown, but should be near, judging by the super good performance of KLCI) Furthermore, the U.S presidential race will happen on 6 November.

4. There is a oversupply of new residential properties, with most of them without any occupants because their owners are 'investors'. Unless, I can find a good property with a good location, build,decent price, or satisfactory passive income flow it is something I want to avoid touching for now.

Conclusion: I am comfortable with the amount of leverage that I have now :) Will revisit this again next Q2 2013.


2 comments

  1. Mr Lonely // 11:59 PM  

    teach me how to see stock rise or fall can? >.<~

  2. Kris // 2:25 PM  

    But I am a lousy teacher, Lonely :P

    You can read more books or internet articles out there on stock trading.