Saturday, September 6, 2008

Investment Views - Slightly Different from malaysiakini

As investors are aware, the KLCI has been in the doldrums lately and even though the trade figures look very good, money is not going into the market.

Of course political uncertainties affect the market and according to the malayiskini article Malaysian investors brace for Sept 16.

Allow me to share some of my experience in the stock markets.

1.Markets are slow to pick up once they are down. It takes longer to build up than to come down. Going up may take 2 to 4 years but coming down requires a few weeks or months.

2.Don't borrow money to buy shares as that is how most people lose money in the share markets.

3.Buy shares in well-managed companies and be aware of companies with strong political connections. If PR government comes in, some of those lucrative deals may be lost.

4.Don't expect to buy at the very bottom or sell at the very top. That way you will be able to sleep well.

5.Don't place your life savings with so-called investment consultants. In the recent de-listing of BSDProperties, I received the so-called "independent advice" long after the offer had expired.

6.Simple rule of the contrarian player is "Buy when you hear cannon shots and sell when you hear trumpets sounding".

In the longer term if any reformed government is able to reduce the government expenditure and channel the funds into good projects that improve the business climate, the market should benefit as FDIs will increase.
I expect the market to take off after the next General Elections when it is really decided who is going to govern Malaysia.

Grapics: thanks to malaysiakini. Hopefully this is how the KLCI should trend.


Nostradamus said...

Anwarwood Productions - The Biggest Blockbuster Show on Earth!
(Anwarwood Produksi - Tayangan Paling Besar dan Hebat di Dunia!)

Beware! Politics is a game not for the faint hearted in Malaysia. Malaysians will have heart attacks when you see the end. Even if you don't, you will suffer a mild stroke or high blood pressure. Why? The Titanic 2 show this time directed and scriptwritten by Anwarwood Productions will continue with the following scenes:

1. Little Napoleons will continue with the phrase "The End Justifies The Means" in protecting their interests.
2. Some passengers will lose all sense of conscience and humanity when the ship is finally sinking.
3. Everyone in the ship will rush to get on the lifeboats.
4. Money is used to buy anything to safe oneself from impending doom.
5. The Best Actor and Supporting Casts together with Trojan Horses are finally shown at the end of the show.

Whatever the emotions left at the end of the show, please remember that it was just a show, just like what politics is all about. The reality of living together continues in this land.

ken said...

Believe or not, our economy is hitting iceberg, now is sinking. Obviously foreign investor lost their interest in this bolehland. Budget 2009 is mostly in their politicking, doesn't help on economy. Don't forget we are depending on foreigner though we were independence for 51 years. In past 20-30we wasted our money to do none but corruption, so we now have to face it.

I believe Anwar might help on recovery, as u know he is famous in international arena. U must understand regrow economy no mainly on anyone's capability but some time good relationship. Dollah definitely not in this loop.