MONEY MATTERS : WHAT TO EXPECT WHEN YOU INVEST USING FUNDAMENTAL ANALYSIS

Firstly, this helpful information from Investopedia: Technical analysis and fundamental analysis are the two main schools of thought in the financial markets. As we've mentioned, technical analysis looks at the price movement of a security and uses this data to predict its future price movements. Fundamental analysis, on the other hand, looks at economic factors, known as fundamentals.

Both ways involve stock market investing and each has its own pros and cons. Now, let's answer the question head on: 

Fundamental Analysis (FA) is great for people who don't have the luxury of time. This is in contrast with Technical Analysis (TA). Since FA looks at more objective factors {sustainability, growth, etc.}, people can make sense out of it rather than TA which is driven mostly by sentiments. Also, there are resources out there that suggest which stocks to buy based on their case studies {coupled with proper caveats, of course}. Good examples are Bo Sanchez's Truly Rich Club {TRC} and COL Financial's Fundamental guides.

For a 5-year time horizon, gains are pegged, at most ~40%. We want quick gains, well, who doesn't? However, we have to be realistic when dealing with stock returns. This percentage is based from 2011 to 2015's study from TRC. In short, we have to be patient and take on all the volatile movements for the time being. Take comfort by the fact that 40% is way higher than the PH inflation so in a way, we're still in a good position.

CMK READS: THE CALM & THE ART OF THINKING CLEARLY

I know, I know. It's been ages since I published another CMK Reads series. Sorry about that! To compensate, I thought of doing some book shopping last weekend! Definitely, this pair is the most weird combination I ever got. They're on each side of the spectrum. Heads up that I'm reading them simultaneously so I can't give you a full review just yet.

THE ART OF THINKING CLEARLY
I was originally looking for the Calm book when the white and gold caught my attention. I skimmed the back page, few bits & bobs looked promising so I got a copy. I've read about 5 chapters (each chapter is short) so far. I won't lie. It's one of those that you should take with a pinch of salt. Basically, it's a book analysing how people make decisions. Be it about which course to take at the university, which coffee flavor to drink, who's to marry, whether to pull out your share of stock today or tomorrow... in a nutshell, it is thinking about thinking.

I like the data and how it is presented but I can't help but think it is just another copy of Thinking Fast and Slow by Daniel Kahneman. If you're not careful, reading this sort of genre will turn you into a perennial pessimist. In defense, it can enhance your critical thinking pattern so think of it as a sharp knife. It can work both ways... for or against you.

CALM
Can we just stop for a while and adore the cover? Its cover is as good as its content so go ahead and judge the cover! It is an interactive book and like it's carrier banner, it aims to put you on a zen state. It's such an easy read and the fact that you can write and 'own' each page makes me love it even more. There's one particular part that's my favourite.

Here goes:

WEEKEND HAULS : ART AND BEAUTY LOOT

Hey guys! How's your week been? I just had my home cooked spicy tuna pasta and a warm cup of tea. It's Thursday night on this side of the globe and I thought catching up with my blog is a nice, cosy idea! I recently shopped for some coats and trainers the past week but I reckon it's best to write a separate post on that so stay tuned. Either that, or you'll see them on my OOTD series. For now, here are my happy thoughts for the week:

STABILO MEDIUM FELT TIP MARKERS

It's technically not a purchase because I returned the coloured pencils I bought from 2 weeks ago (click HERE). I realised it's a bit stressful for my hand when I have to exert extra effort (colours are pale, I'm afraid) so I decided to return them. I'm yet to finish my mindfulness colouring book but I'm enjoying every bit of it.

SUPERDRUG BEAUTY GOODIES

I hope you don't mind me lumping all of them in one category. Star of the show is the Olay eye cream. Yeah, I feel it's a high time to start my under eye maintenance. I can't see any visible improvements just yet but I take it as a preventive measure. Got the masks as well as part of my pamper time every once so often. I tried the tropical cocktail variant and gosh I love them! I also got 2 Rimmel Exaggerate Full Colour Lip Liners (whoah, that's a mouthful!) Shades are Red Diva and Indian Pink. Lastly, the facial wipes. I bought the Superdrug micellar ones out of sheer impulse and I got the B variant for free.

OGX LEMON HIGHLIGHTS CONDITIONER

I got this baby from Boots (another beauty drugstore). I was looking for their buy 2 get 3 promo but sadly, there was none anymore. Anyways, it's only the conditioner that I direly needed so I bought it anyway. Call it strange but I can see my highlights being visible after nearly a week of use.

APPLE ETHERNET ADAPTER

Oh boy, I was just so glad it's only £25. First time I asked around, the rep said it was £40! My jaw nearly dropped! Good thing when I came back, another rep assisted me. I usually use WIFI but unfortunately, the connection in our new Wimbledon office is sporadic. 

OOTD : AUTUMNAL BLISS

Transition between summer and autumn can be tricky. This is the stage when your skin doesn't know whether it's dry or oily. I've been road testing some Olay products now and so far, I'm happy with it. A couple of weeks ago, me and my friends went to Cotswolds. It's a little picturesque city in England. They have fish and chips, cream teas, very English all in all :) This is what I wore for the trip.

• Biker jacket from Primark
• Maroon jumper from H&M
• Leggings from H&M
• Boots from Forever 21 
• Red lipstick from MAC (Ruby Woo)

 

Apparently, there's an abundance of teas all over England. And these writings on the box are so on point!

During summer, sun sets at around 10 pm. During autumn, 6 pm. During winter, it can be as early as 3 pm! So, all I'm saying is - we should enjoy 'sunshine' while it last. Whatever that means! -CMK

MONEY MATTERS : 5 POCKETS TO FILL UP EVERY PAY DAY

What do you usually do when you get your pay? I've had a discussion with one of my colleagues about how long do we see ourselves working. I mean, the ultimate goal is to make money work for us. Let's admit it - as we grow older our income should be more stable and up to a point sustain our retirement and other plans. "But that's too far off!" you might think. However, this is one of those inevitable things we have to decide upon way before it happens. And trust me, this involves exciting stuff as well.

FUN FUND

Let's put this first on the list, shall we? :) Most money talk shows suggest that you set aside 20% of your salary for fun fund. This, of course, is subjective. The idea is to establish a borderline between what's within your budget. In addition, it gives you a good feeling whenever you've spent below your threshold. 

INVESTMENT FUND
This should be for your long term plans (you may call it retirement fund, if you like). Another 20% suggestion from most of the experts. You have the option to put this on a mutual fund, unit investment trust fund (UITF) or stock market. Goal is to beat inflation (which happens to be ~5% yearly in the PH), so you have to find an investment that yields more than 5% rate of return yearly. Factually, this happens to be the stock market if you'll look into the figures in detail.

OPERATING EXPENSES FUND
Just as businesses have operating expenses, so should you. This involves necessary costs for your upkeep. Things like rent (or house amortisation), transportation fees and food. Whether to include your everyday coffee from your fave shop is your own call :P

TRAVEL FUND
You can substitute this to anything you like (it has a medium term horizon compared to your investment fund). Though it should have the same nature as that of your investment fund, you may want to have it as a separate entity. It's empowering to know that after 3 years, you have X number of amount to splurge on travel, cooking class, name it!

Last but never the least after the jump!

OOTD : BLUES HUES

This blue coat is one of my most worn clothes this year! I bought it from Forever 21 at Glasgow, Scotland last December. Last Saturday was my first time in Central London after I got back August this year. I miss the place but in the same token, it was so busy! Photo is taken near Zara Oxford Circus where I did a bit of shopping. Outfit details below:

• Blue wool coat from Forever 21
• Olive green jumper from H&M
• Leggings from H&M
• Trainers from Nike (Airmax 90)

You can definitely tell that winter is just around the corner, but as they say, enjoy the daylight whilst it last. This is probably one of the shortest posts I'll ever publish! There's not much left to say but: I  miss you guys! Catch you later! XO - CMK