Posted by stevenkau > 2012-03-11 10:50 | Report Abuse

In Mutual Funds, it depends the funds' sector to be invested in, and in that particular sector, what are the companies involved. Therefore, the Fund Manager's strategies have to be clear, whetehr he is adopting a passive or active management strategies, and either one will lead the market investors either win or lose, even though it is a medium to long term fund.

Other than that, we need to be clear that in the market, their is a manipulator, winner and loser. The manipulator will just look at the opportunity to swap the shares for the profit taking. Therefore, I just understand a theory that during the market investors greedy on the shares because keep buying in the number of shares, hence, we need to be scare(means we need to sell) because this is a trap, and in other words, when the market drops / market investors scare, then we need to be greedy of buying in the stocks, this is how the market plays because the manipulator will see such situation to trade.

Sometimes, when buying in a share, if it is potential, normally the graph will show there is a market wave, normally when the investors buy in, then there will be a market drop because the manipulators will purposesly push it down to make the investors scare to sell off...but after the wave, the market will normally being push up.

I also realise one thing, which when there is a bullish market, i quite recommend or advise investors to invest in Unit Trust, for index or index related funds, because during a peak, it is not really very clear what kind of stocks to be invested in, because the stocks will normally have been pushing up. However, during the market downturn, we should dump in to invest in stock, and bonds as well. Of course, such investment portfolio has to be paired with time, value, and the topic of the condition.