Saturday, June 30, 2007

Crisis on 2007

Days ago when I was having some serious discussion with friends in about the economic of Malaysia. (Wah-lau how serious can it be in Mamak Store??!!) Every sectors are complaining about the market is slow, collection is bad, sales drop, no commission and many many more. But 1 thing is clearly weird why the share market keeps on moving upwards like going to break the all-time historical high of 1,400 in the Kuala Lumpur Composite Index. (probably too many syndicate out there... therefore, watch out your investment.)

Not much of a conservative person I am, I like gambling, I like high risk with high return. But this year the bull run in the share market didn't lure me in. Why?? Perhaps I got burned during the beginnng of the year where most of my counter from profits turn to losses. Despite of that, I'm not discouraged and diasppointed with my picks of certain counters and I believe to make money from share market you must have "in-sider news". If not you'll end up like me make money in the beginning and make losses at the end.

My personal opinion for 2007 is because of one norm, the 10 years rotation of economy crisis which take place in both second half of the year 1987 and 1997 after June. (Be extra cautious about 2007 because July is coming!!!) During the pre-crisis, nearly every stock exchange was a top investment destination and resulted heavy exchange activity daily. (certainly this year 2007 China, Hong Kong and Japan are enjoying the bomb in the share market). What does it end up? Too huge bubble in the market and investor (syndicate) tend to pull out from the market and overnight the share market crash. Who is the victim? Retail investor like you and me who are not too sensitive or too optimistic towards the share market.

My advice might not be true but hopefully retail investor like you and me be more alert and sensitive about every movement and news in the world in order for you to cut loss early rather than seeing the market crash yet you helpless do nothing about your own money.

Despite of the above negative and pessimistic opinion, we still can Make Money even the share market is going downwards. HOW?? Well, here is the little tips for you all. Short the Future!!!

1 comment:

Law said...

sorry because i have to say i dun believe in insider information at all... hehe... cos i am a very conservative investor... i believe in the prospect of the company and its principal activity. will the economy crisis in 1987 and 1997 happened in 2007? In fact, everyone is discussing since last year. However, i do not think it will happen in HK!! Why? because HK's big boss again said they will fully support HK forever. hehe.. Who is the big boss?? its PEOPLE'S REPUBLIC OF CHINA!! :) but still, there is always some risk in any investment. Be careful when u invest!!