Tuesday, January 15, 2008




Naive & Vulnerable

If you check out the last 30 minutes of yesterday's market in Bursa, you will find that it broke below 1500 for a while but was artificially lifted to close above 1500. Hmmm... , powers to be think they can manipulate the market's direction and sentiment?!! How naive and silly. The market is bigger than all of us. If we can "control" the market, why did we correct to below 500 in 1997/98 and spent a few years below 800?

Or is it that the people dishing out strategies to state funds think that the rest of investors are silly enough to believe that coming back above 1500 is a credible technical signal. Are investors that gullible? Maybe some are, but most are not. If you guys are trying to do a financial engineering, please be smarter la. This smacks of some guys playing with their Game Boy console. When the global equity scene is bleak, you don't try to counter the wave. If things were calmer, maybe you can lift the index and generate some plays in certain stocks to create a vibrant mood. When overall equation is not conducive, go and play also no one follow la.

Decoupling? What decoupling? Last I heard, the US is still Malaysia's biggest trading partner.

How dumb do you think investors are in Malaysia? Of course it does not hurt the guys planning all this as its the state funds which suffer. Just looking at the market for the past few days, with the exception of palm oil, there has not been genuine buying or follow through. But I did see the Maybank covered warrants going limit up, conveniently before Maybank shifted to fourth gear. This is insider buying if ever there was one. Please, SC and Bursa, please just go through all buyers who bought more than RM50,000 worth of Maybank covered warrants one or two days before the jump, and bring them to court. I know we have never done this before, but if you are always talking about maturing into a first class financial center: this needs to be done. Haul them up, and see if they or their relatives are part of any state funds or fund management companies, ask them why they bought. At least scare the shit out of them. Do we have the political will to do so, or will SC and the Bursa risk stepping on many rich and influential toes?

Who cares what I think.... or what the people think... and that's the real problem with our country.

6 comments:

rask3 said...

Excellent critique.

Rask

hellthy correction said...

On this note, i would think that investing in managed funds are definately more rewarding over the medium to long term. Our objectives should be colectively and consistently invest (using dollor cost averaging principles) in such instruments to meet our objectives. covered warrants or and form of trading derivatives are highly risky and not suitable to meets ones finacial long term plan. It is like making a punt in genting highlands tai sai table. All these leveraging or deleveraging are just ploys to enrich the issuers. Investment guru B.Graham says if u play against the house, you make them richer. In the nutshell, the more you trade the more you are going to make your broker richer. If time is on our side, we will always win.

girl from nowhere said...

i am juz looking on the klci,can b said the beginner to the securities market.i would like to buy the unit trust and came across your article in the star.u mention tht v hav to ask the key question when buying unit trust.i would be pleased if u can explain in detail the question need to ask.note:i m an accounting student currently pursuing acca and nvr buy the unit trust b4,can be said a 'gullible 'investor.
my fren uncle who has invested in the stock market said we hav to buy the share when the price is low,the klci now is dropping,izzit mean tht this is good time for me as a first time investor to enter the stock market?i would apprecite your expertise in clarifying my doubt.paise.my english not tht good.

Salvatore_Dali said...

girl,

i think u need private tuition fm me... free if u r a pretty girl, a bit expensive if u r not... i cannot tell you when to buy, if u keep reading the blog, i will highlight when i think it is ok to re-enter mkts

hellthy correction said...

doesnt need an expert to figure this one out.....just do a dollar cost principle type of investment i.e. put aside RM 100 every month either by auto debit or standing instruction to buy some blue chips stocks. Question : How to buy of blue chips stocks with RM 100? ANSWER : Just simply choose a 5 star rated fund and thats it!

Forget about buying low sell high (unless u have insider news which is against the law). The golden rule is never trade! U dont want to make someone else rich do u?

girl from nowhere said...

haha,i m not pretty,juz normal student wearing spec...haha.sumore,i think u r in kl big cities like tht,haha.i m not over there...pearl of orient,sure i will keep on reading ur blog.thanks u