So one of the biggest thing that happened earlier today was that, Malaysia’s prime minister has just announced that he will be resigning as the prime minister of Malaysia.

The motives aside, the stock market of Malaysia reacted and fell to its 5 years low, the index fell below 1500 points for the first time in 5 years.

One of the things I mentioned to my friends in Malaysia is that, the Malaysian stock market confuses me. It seems that the market is driven not by company fundamentals, but rather driven more by geopolitical movements. 

As investors, I think this is discouraging. We only have access to the financials of companies, and we make investment decisions based on the company’s financials. However, it seems as though geopolitical risks are very high in Malaysia, and the politics can swing a high rising company stock and send it crashing down.

When the