At least for the next several months, the bull case is much more compelling than the bear case...for the Malaysian stock market.
1....principal blue chips have dropped more than a year by now. The blue chips are trading at 12 month lows already. Not as if the blue chips are in speculative zone.
2...oil prices at set to recover from this level
3....it is only some speculative shares that may have difficulty finding support at this level
4..fundamentally, export companies will continue to do very well into 2016. That is the nature of all companies when their home currencies are depreciated by 20 - 30%
there is nothing to fear except fear itself and wrong choice of stocks.
remember the August decline? turns out to be golden buying opportunity.
Same with this one.....herd mentality is for losers. Being steady and analytical is for winners.
expectation of oil price to go up and ringgit to strengthen is behind today's selling......
I expect oil price to gradually move up,,,,and Malaysian stock market to also gradually move up...and on spectacular profits of Malaysian exporters , quarter after quarter.
Homeritz Q results released today is indicative of results for all export counters in coming reporting season.....not only that but Malaysian exporters will continue to report good result quarter after quarter because they are very competitive in world markets at current levels of the ringgit.
(the public do not realise average wages of Malaysia is already lower than average wages of China. )
concept players selling export stocks on strength of ringgit. All these concept players, can make money or not?
to make money in the stock market, one has to boldly face the concept players and look at the value of the underlying stocks these concept players are selling / buying.
Once the dust has settled, as investors survey the landscape of Malaysia...the same conclusions will again be obvious. 1. After the Dec reporting season is over, the PE 10 export stocks will be PE 5 or 6. 2. Anyone wishing to play Malaysia, export stock offers the best returns 3. Even at a ringgit $4, the better exports stocks will still do very well indeed,.
and this is not even mentioning that....George Soros is negative of developing country currency and continue to be pulled down by the yuan through 2016....the next currency crisis...the ringgit at $5?
Dr Doom, Mark Faber : Despite his often dire predictions, Faber identified one area of the market in which he has some long-term confidence for a rebound: emerging markets. He predicted a possible rebound for Brazil and Russia , which are among the economies battered by lower oil prices. He also reiterated Wednesday his hopes for growth in emerging Asian economies, like Vietnam.
I need to disagree that Mr Koon cannot be wrong. Even GOD make a mistake in choosing the choosen one. just stick to your own stye of investing ( knowing best in whatever you do ) and improved on others. Happy trading
I need to disagree that Mr Koon cannot be wrong. Even GOD make a mistake in choosing the choosen one. just stick to your own stye of investing ( knowing best in whatever you do ) and improved on others. Happy trading>
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by Desa20201956 > 2016-01-28 10:53 | Report Abuse
At least for the next several months, the bull case is much more compelling than the bear case...for the Malaysian stock market. 1....principal blue chips have dropped more than a year by now. The blue chips are trading at 12 month lows already. Not as if the blue chips are in speculative zone. 2...oil prices at set to recover from this level 3....it is only some speculative shares that may have difficulty finding support at this level 4..fundamentally, export companies will continue to do very well into 2016. That is the nature of all companies when their home currencies are depreciated by 20 - 30% there is nothing to fear except fear itself and wrong choice of stocks.