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.