Morning to new high in DOW30 and S&P500 ... and shall we see some 'bull' running in KLCI?
Unfortunately, no. Exiting of some foreign-funds (could be due to 1MDB and political risk) ... as funds moving back to US (election-rally?), we do not see much upside in KLCI. The good point is that ... well, there is limited downside on KLCI too.
So .... even some market crashing down, we will not see much impact in KLCI. At peak around 1900 level .... divide 2 would give us ... emm ... 950!! I do not think so we would see KLCI that that level ... KLCI supported by local funds, nothing else much to shout about.
So ... preparation of market crash needs my pointer #3 : Platforms and Instruments. Why should we limit ourselves to trading KLCI, if we do not see deep valuation in the KLSE's stocks?
If we are to stay in comfort zone and not taking risk, we will be in the 'norm'. That is my belief ... so, I m preparing for crashes in US or China. Should EURO dis-integrated as what Soros pointed out, Euro/UK markets might triggering crashes too ... we should be able to move to UK to buy 'cheap' good fundamentals stocks.
But ... HOW? Are we prepared for such situation?
Knowledge is NOT power ... applied knowledge is. My pointer #4 is "Knowledge and Experiences". Without these, we could not capitalise on the coming crash, which might only give KLCI a hiccup and not a hard-landing crash ... I m preparing myself for out-of-KLSE crashes ...
Intrinsic Value : I will be focus to read about these for this month. Personally, I would never understand much on these fundamental terms or claim to know how to calculate these figures, but I just need to know more-or-less what it is about. To be able to buy into companies listed in US or HK. Still ... I could never able to grasp these concepts ... just a guideline.
I still believe that KLCI will not crash ... and even it follows the shake-up from US, UK or China ... it will be only minor hiccup. So ... staying invested in KLCI should be OK ... but I won't.
I want to be able to prepare myself ... for the coming crash ... US(NYSE) or China (thru HKSE).
It doesn't matter where or what causes it. I m no economist ... and I no accountants. I m just a trader who wants to prepare ... and learn from many experienced ones, to capitalise on coming crash.
30% of my funds will move to the core of the crash ... and most probably not in KLSE?
Time to do my reading ... and exercise.
TEH
Kevin Wong
30pc,a prudent enuf sum.
All d best!
2016-07-13 17:19