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Read the river upstream: how one blogger uses macroeconomics to judge markets

Share prices, property and gold are the downstream, Winson Choong argues; interest rates and the bond market are the upstream, and they move first. His stories from Kenya in 2015 and Malaysia’s property cycle, and the calls he says came true in 2026. Part 4 of our notes — not investment advice.

By the VibeFlow team · · 8 min read

Terms used in this part

Monetary policy
What a central bank such as the US Federal Reserve does with interest rates and the money supply.
Quantitative easing
A central bank creating money to buy bonds, pushing more money into the economy — “printing money”, in his words.
Bond yield
The return a lender earns on a government or company bond. When yields rise, borrowing costs rise and money is pulled towards bonds.
Hot money
Foreign investment that moves quickly between countries in search of higher returns, and leaves just as quickly.
Liquidity crisis
Cash becoming scarce because money is flowing out of other markets — in his account, into US bonds.
House Price Index
Malaysia’s official measure of changes in house prices, published by NAPIC, the National Property Information Centre.

Upstream and downstream

When he studied macroeconomics at university he scored a distinction, and assumed it was knowledge for civil servants and banks. It took him years to see it as a tool for personal investing.

His model is a river. Share prices, property prices and gold are the downstream: the results. Most investment commentators on Facebook, he said, talk only about the downstream, with charts, software and technical analysis of what a price may do in the next few weeks. Upstream are the economic signals, and when they change, the ripple reaches the downstream three to six months later. He watches two: the US Federal Reserve’s interest-rate policy, which many people write about, and the US bond market, which few can explain. Put the two together, he said, and the picture becomes much clearer.

Upstream to downstream — his model of the markets

  1. Upstream: the Fed’s interest-rate policy and the US bond market
  2. 3 to 6 months later, by his reckoningMoney moves: currencies, interest rates and liquidity shift
  3. Downstream: share prices, property and gold

Most commentators, he says, analyse only the last box. He reads the first.

Kenya, 2015: when a US rate rise reached Nairobi

His first real test came in 2015. He was country manager in Kenya for Probase, in charge of arranging bank financing for a project the company had won. Since the 2008 subprime crisis the Federal Reserve had only cut rates and printed money; his whole generation, he said, had never lived through a rising-rate cycle.

In September 2015 he expected the Fed to start raising rates, and reasoned that Kenya, whose reserves were thinner than Malaysia’s, would see foreign money leave. Two things would follow: the Kenyan shilling would fall badly, and Kenyan interest rates — already about 12% for commercial loans, against 3% to 4% in Malaysia today — would rise.

So he told the group finance manager not to convert the company’s US dollars into shillings yet, and not to take up the bank’s offer. The finance manager replied that a US rate rise could not affect Kenya. Winson took it to the director, and the offer letter went unsigned until the picture cleared.

“Financial knowledge and economic knowledge are completely different knowledge.”

— Winson Choong

The Fed raised rates in December 2015, but in Kenya the money had already started leaving in September and October. By his account the shilling fell sharply within months and Kenyan interest rates shot up — he recalls rates of up to 30%. Waiting saved the company a currency loss and a far higher cost of borrowing, and when it did convert, its dollars bought considerably more shillings than they would have months earlier. From then on, he said, he was convinced that economic knowledge matters for business and for personal investment.

Kenya, 2015: the chain he expected — and what he did

  1. The signal

    The Fed prepares its first rate rise in years. Since 2008 it had only cut rates and printed money.

  2. Hot money leaves

    Foreign money pulls out of economies with thin reserves, Kenya among them, in September and October.

  3. Currency and rates

    The shilling falls hard and Kenyan interest rates, about 12% for business loans, shoot up.

  4. The decision

    Keep the dollars and leave the loan offer unsigned. When the company did convert, its dollars bought far more.

Malaysia’s property cycle: out in 2017, in during COVID

Back in Malaysia in 2016, property was booming and Facebook was full of property gurus selling courses. He went to a free seminar where the speaker promised a special formula to get rich easily. His friends and seniors were all buying.

He looked instead at plain public data — the Malaysian House Price Index published by NAPIC — and concluded that the boom would turn in 2017 and 2018. So rather than invest the savings he had brought home from Africa, he sold the properties he already owned.

In 2020 the economy turned: retrenchments, bankruptcies, banks laying people off. In 2021, under lockdown, houses and shop houses were for sale everywhere, auctions were common, and people were afraid of a crisis. That is when he bought several properties. With the recovery in 2023 and 2024 their prices rose; one house bought for about RM410,000 was worth about RM600,000 two years later, pushed further by the RTS Link to Singapore.

Malaysia’s property cycle, as he traded it
  1. 2016

    Boom, and gurus

    Social media full of property courses; a free seminar promises a formula to get rich easily.

  2. 2017–2018

    He sells

    The NAPIC House Price Index says the boom is turning. Everyone else is still buying.

  3. 2020

    Downturn

    Retrenchments, bankruptcies, banks laying people off.

  4. 2021

    He buys

    Lockdown: homes for sale everywhere, auctions, fear of a crisis. He buys several properties.

  5. 2023–2024

    Recovery

    Prices rise. One house goes from about RM410,000 to about RM600,000 in two years, helped by the RTS Link.

“When everybody was rushing into the property market, I retreated. When everybody was scared of it, I entered.”

— Winson Choong

Gold, and the two decisions he rates highest

Studying the subprime crisis convinced him that gold was undervalued, and he began buying at roughly US$1,200 to US$1,300 an ounce. He put the price on the day of the talk at about US$4,000. Buying property during COVID and buying gold early are what he calls his two great investment decisions. His conclusion was not that everyone should buy either, but that a salary gives you savings, and savings invested with understanding can grow faster than the salary itself.

  • RM410k → 600kA house bought in 2021Its value about two years later, roughly
  • US$1.2–1.3kWhere he began buying gold, per ounceThe transcript is unclear on the exact figure
  • ~US$4,000Gold per ounce, as he put itOn the day of the talk
A loose pile of gold bars on a pale background
Gold, one of his two largest investments alongside property. He says he began buying after studying the 2008 subprime crisis.Photo: Stevebidmead, CC0 1.0, via Wikimedia Commons

The 2026 calls he says came true

The bond-market series made 2026 his breakout year. In his July and August seminars, he said, he made several calls that were borne out two to three months later. We report them as he told them; they concern events of the last few weeks that we have not checked independently.

Calls he says he made in 2026, as he told them — we have not checked the outcomes
His callWhenWhat he says happened
If the yen weakens past 160 to the US dollar, the US will step inHis August seminarAbout a week later it reached about 163, and the US said it would intervene to support the yen
US bond markets turn volatile in September and October; yields spike and drain liquidity from other marketsHis August seminarStock markets fell in the week before the talk — he named China, the US, Turkey, Indonesia, France and the rest of Europe
The AI bubble will burst; prepare for an economic crisis within the next year or two2026Still open

His most contested reading came as he explained the method. The official reason for the US–Iran war earlier this year, he said, was Iran’s nuclear programme; his reading is that the US needed to borrow, and that war sends frightened money from around the world into US bonds. That is his interpretation, not established fact, and readers should weigh it against the stated reasons and wider reporting. We include it because it shows how he reads events through the bond market, not because we endorse it.

Opportunity or trap?

Why teach macroeconomics at all? Because, he said, people who learn the logic are harder to cheat. The investment world is full of people who pat your shoulder and promise to make you rich at speed, and many have lost their retirement funds, or their parents’ hard-earned savings, because they could not tell an opportunity from a trap. He does not offer tips. Ask him how to invest in nuclear facilities, he said, and he will tell you he does not know; what he offers is a way of reasoning about the economy.

Dr Chan made the same point in her own words: the people selling get-rich formulas online are rarely the people who got rich. You will not see Warren Buffett, she said, selling a course.

Common questions

What does upstream versus downstream mean in investing?

In Winson Choong’s model, the prices of shares, property and gold are the downstream. The upstream is the economic signal that moves them, chiefly central-bank interest-rate policy and the US bond market. He says changes upstream reach prices downstream in roughly three to six months.

How does a US interest-rate rise affect a country like Kenya or Malaysia?

Money flows back towards US assets. Countries with thinner reserves can see their currency fall and their own interest rates rise. In Kenya in 2015, he says, the shilling fell sharply and borrowing costs jumped before the Fed had even moved in December.

What is the NAPIC House Price Index?

The Malaysian House Price Index, published by NAPIC, the National Property Information Centre of the valuation department. He said this plain public data was enough to see the 2016–2017 boom turning, so he sold before 2018 and bought again in 2021.

Is this investment advice?

No. This post reports one speaker’s views and his own results, as he described them. His forecasts may be wrong, past results do not predict future ones, and you should do your own research or speak to a licensed adviser before investing.

Sources

  1. Federal funds rate — Wikipedia
  2. Bond market — Wikipedia
  3. Kenyan shilling — Wikipedia
  4. Central Bank of Kenya — centralbank.go.ke
  5. National Property Information Centre (NAPIC) — Malaysian House Price Index — JPPH

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