My New Blog for Year 2010

One of my major goals for Year 2010 is to get an Official Blog of Jonathan Quek.

Great News! I’ve set up and got the blog running at www.Jonathan-Quek.com!

Do check out www.Jonathan-Quek.com for more posts on Financial Intelligence!

Inflation.. It’s COMING!

HAPPY NEW YEAR 2010! This year onwards, I’ll be adding a new category in my blog and it’s called Market Updates! And today, I’ll be addressing one of my main concerns since the great rebound of year 2009.

Inflation, in the most part, has been well contained throughout history. Low levels of inflation are considered attractive, as they are typically associated with better investment returns than high inflation or deflation.

During recent months, hyper-inflation and deflation are obvious concerns for policy makers. Although the chart below examines US inflation, the high level of correlation between inflation levels globally would suggest that the conclusions are equally applicable to other developed economies. The last 138 years have seen 58 months with deflation of 10% or greater and 185 months with inflation of 10% or greater.

THERE IS UNCERTAINTY ABOUT WHAT INFLATION WILL LOOK LIKE IN THE COMING YEAR!

As we move into 2010, INFLATION is one of my main concerns. As central banks exit their quantitative easing programmes, there is an awareness of the timing risks involved. There might be 2 scenarios:
Scenario 1: If they exit too fast, too early and the nascent recovery may be choked off.
Scenario 2: If they exit too slowly and the risk is that inflationary pressures will build out of control!

How to Protect An Investment Portfolio from Inflation?
1) The most obvious is to own assets which benefit from the causes of that inflationary pressure. These could be broadly termed as “real assets” (the likes of COMMODITIES!).

2) Another approach would be to own shares in companies that produce or invest in these assets.

3) For those who suspect that inflation may be a risk but aren’t sure of the timing of that risk or of its extent, a well-diversified portfolio makes sense. Asset allocation flexibility is a key consideration if your views are not strongly formed at this time.

Unfair Advantage or Opportunity?

My people perish for lack of knowledge – Bible

When I was young, I was told that if I were to study hard, score good grades, get a good company and be a professional executive, I’ll be guaranteed success in life. However, now that I’m a professional money coach to fellow financial consultants and also my clients, I know that those words are merely myths that has been passed on from the past generations to new generations.

In today’s world, you can be an academic scholar but still be poor. This goes against the conventional wisdom especially when we equate people who have high paying jobs like doctors and lawyers with being financial and acdemically smart because they make a lot of money.

Well, I’ve nothing against schools, colleges or universities.. It’s just that I believe that most school systems do a pretty good job with academic and professional education but they will definitely score a fat “F” when it comes to financial education.

In today’s Information Age, we are overloaded with data and it’s the power of ‘proper’ education that gives us the power to translate that information into meaning, meaning we can use to make our lives better.

This blog is dedicated to adding to your financial intelligence by sharing with your some basic ideas and knowledge on money management.

I believe that the difference between those who find it to be the best of times and those who find it to be the UNFAIR ADVANTAGE is FINANCIAL INTELLIGENCE.

Always remember, It’s not stock and shares, commodities or real estate that make you rich.. But what you know about stock and shares, commodities or real estate that makes you rich!

What Have You Done in Year 2009?

As we are approaching Christmas, I would like to wish all Friends and BLOG readers a Blessed and Merry Christmas 2009!

Another whole year has passed like the blink of an eye and another new year is about to begin. Finally, I’ve decided to make time to come back to BLOGGING again!

I believe that at this time of the year, it is important to audit the year that has just passed. I’ve always regarded this month of the year as a time to reflect and write down all the key accomplishments that you have made, the important lessons that you have learnt and ways to improve better for the upcoming year.

In January 2009, I’ve set the following goals:
1) FORTRESS Wealth Advisory
– Speak in at least 8 colleges/ universities in Malaysia to spread the importance of Financial Intelligence and Financial Education to the students of Malaysia.
– Set up my Core Team of 5 consultants.

2) Racketlon Asia
– Help to organize an Open tournament in Malaysia and scout for leaders to organize Malaysia Open 2012.

3) Family & Relationship
– Spend more time with my family and be back in JB at least twice a month.
– Be more open to having a relationship after having conversation with George Ang.

4) Personal Development
– Read more books and improve my investment and financial planning knowledge and skills.
– Practice my public speaking skills by speaking at least twice a month in front of public.
– Challenge myself to complete a full marathon at least once in a lifetime.
– Attend Anthony Robbin’s Unlimited Power seminar and do the FIRE WALK!

Well, in 2009, I’m proud to have done the following: Continue reading

Undergraduate Business Conference @ Curtin Unversity

Miri – 1 October, 2009 – Curtin University of Technology, Sarawak Malaysia (Curtin Sarawak) is holding its 6th Undergraduate Business Conference on 3 October 2009.

Themed ‘Awaken the Financial Genius Within’, the conference is jointly organised by the university’s Accounting Club, Certified Public Accountants (CPA) Australia and Fortress Wealth Advisory.

The conference’s objectives are to nurture Curtin’s graduate attributes, provide a platform for learning and sharing, and widen networking opportunities among students. It is open to anyone of non-accounting background and approximately 200 participants from other educational institutions will be attending.

According to organising chairperson Chew Lun Wu, the conference brings much benefit to Curtin Sarawak students and they truly cherish the experience. “Besides being a good platform for Curtin Sarawak students to share their thoughts and ideas on money matters, we also get to develop our communication skills. It is also an opportunity for us to interact with industry professionals and our peers from different institutions who will be attending the conference,” he related.

“It is a unique learning experience that cannot be accomplished from just attending lectures and reading textbooks. Indeed, Curtin Sarawak encourages its students to learn beyond the classroom and gets us involved in meaningful events such as this conference. It is an event that is always widely anticipated by our students each year,” added Chew.

During this event, I had the privilege to represent FORTRESS Wealth Advisory to discuss topics at the conference such as ‘Beyond the Millionaire Mindset’ and ‘Discover the Entrepreneur Within’.

The Undergraduate Business Conference Co-Organizers

The Organizers: CPA Australia, FORTRESS Wealth Advisory, Curtin University of Technology and Curtin University Accounting Club

Lucas receiving souvenir from the VIPs of CPA Australia

My business partner, Lucas receiving souvenir from the VIPs of CPA Australia

The representatives of FORTRESS Wealth Advisory

Representatives of FORTRESS Wealth Advisory

From the left: Lucas, Jonathan, Kh’ng Lee, and Pierre

Click for more: The VIPs and participants having fun during FORTRESS’s session!

Continue reading

Life With No Limits!

As a college student, George studied very hard and he was burning midnight oil almost every night. So late that he overslept one morning arriving 20 minutes late for class. When he reached the class, he quickly copied the two math problems on the board, assuming that the questions were his homework assignment.

Surprisingly, the 2 questions given were really tough and it took George several days to work through the 2 problems. Finally.. He had a breakthrough and dropped the homework on the professor’s desk the next day.

Later, on a Sunday morning, George was awakened at 6am by his excited professor. Since George was late for class, he hadn’t heard the professor announced that the 2 unsolvable equations on the board were mathematical mind teasers that even Albert Einstein hadn’t been able to answer. But George Dantzig working without any thoughts of limitation, had solved not 1, but 2 problems that had stumped mathematicians for thousands of years.

How Did George Managed To Solve The Problems?
Well, George solved the problems because he didn’t know he couldn’t!
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Are There Any Reasons to Diversify?

Many financial gurus often advises that diversification is used by people to protect themselves against their own ignorance. They noted that if you know what you are doing, you should concentrate your portfolio into equities as they achieve the highest return. And you can achieve low risk not by simply spreading your money around, but by your competence of knowing which funds and stocks to pick. In fact, if you have read the latest chapter of Conspiracy of the Rich by Robert Kiyosaki, there was a paragraph that goes:

‘If you listen to most financial pundits, they will always say that smart investors diversify. Yet, to quote Warren Buffett in The Tao of Warren Buffett, “Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing.”‘

If this investment concept was preached years ago, well, probably the financial gurus are right!

Let’s look at the unimaginable market of today!
Continue reading