3 Rules of Thumb for Policymakers

3 Rules of Thumb for Policymakers - Ray Dalio

1. Don't have debt rise faster than income
2. Don't have income rise faster than productivity
3. Do all that you can to raise your productivity

10 Causes of Major Stock Market Crashes

10 causes of major stock market crashes:

• political events 
• government actions
• war, terrorist attack
• currency crisis
• credit crisis
• debt defaults
• bank failures
• commodity price crisis
• stock crashes in a major market becomes contagious
• technical (flash crashes)

Many of these events cannot be predicted. These events can happen anywhere in the world. Global markets are now highly correlated. Thus, to avoid these black swans with certainty, you'd have to be out of the market most of the time. 

Hence, an investor should stay invested and the safest way to invest is by value investing.

Here's 2 Things Which Could Upset the Malaysian Market

Potential black swans for Malaysia in 2017, according to James Hay (Pangolin Investment):

1. terrorist attack
2. rising interest rates