Tuesday, October 14, 2008

Buying Things In Current Times


Most people are not really that badly affected by the current market turmoil, because it did not happened overnight,.... almost everyone could see it coming a mile away... only those who musta, gotta have a trade every week would have been caught a bit, even then the pain would be minimal if they employed a true trader's instinct.

Booyah... due to the time difference, I got to catch 10 minutes of utter crap and mayhem with Cramer on TV... booyah mah ass... What to buy... cash is king... cash is king but also cannot put into any banks... banks now failing at a higher rate than planes not leaving on time when you fly MAS. So, like my fellow bloggers said, keep in Milo tin ... but not chinese milk powder tin though, also got melashitminnie... you don't want to be using notes tainted with that shit later... you know the velocity of money...
Stock indices did not follow the usual rules of performance and valuations... nobody told the stock prices that they had to follow certain rules on value ... the market is telling the rest of us that markets are made-up fantasy football game-like things... they will give 20x PER as long as there are bidders for them ... they will give the same almost zero PER if there are no buyers left... People with cash hoarding them... despite the massive capital injection by central banks, the banks themselves are also no lending them out. What about gold then, even that thing does not make sense anymore... it is telling us that its just a shiny yellow metal that does very little to our well being. In the end we need to buy food to keep us from hunger... ah, yes... food over gold other metals... next to food would be fire, back to cavemen tactics, need fire to cook some of the food and warmth, fire also allow us to spot danger, them robbers will come to steal our food... no more share scrips, no more share markets...

Many readers send me private emails to answer, please don't do that, I am not an advisory service... if you have a question, make sure you don't mind sharing with the rest... Is it time to buy... if you haven't already, its an OK time to buy in three or four stages, so that you can get a good average price. Do not be lulled by the 11% jump in the US, that was on low volume on Columbus Day holiday... did you also know that the top few daily all time high spikes happened around the 30s Depression as well. Yes, they had 16% daily gains then even... sellers exhaustion... whatever you call it... its OK I think, I think the Dow will try to make 10,000 as a new base to consolidate. Same with KLCI at 1,000. Then we should spend some time at these levels.


The US government saying they will buy stakes in banks is as close to ensuring that banks will lend to one another. The crisis of confidence and debilitating counterparty risk fears should subside. Its OK but do not go overboard.

p/s photo: Nia Ramadhani

7 comments:

叶文诗 said...

Hi Dali,

There are some typos in your article.

Cheers.

Andrew Chua said...

Wat to buy? Wat to buy?

If I have the opportunity maybe i would buy Miss Ramadhani a nice dinner...

Wonder if that would be a savvy investment...

clk said...

Are these signs of a "dead cat bounce"?

There are still lots of unanswered questions and hopefully the panic has stalled but the fundamentals in US is still what it is at this moment. Nothing has fundamentally changed from 2 weeks back in US.

I don't think things have changed that significantly except that Capitalism as we know it is dead! And the Grandfather of Capitalism has to reinvent the wheel.

I'm not ready to go long yet as I think there has not been blood on the streets yet.

Ivan said...

Andrew Chua,

you are so cute. .but if you really can c Miss R...pls do invite me as well .. we go together :D


Hi Dali,

Basically, yday huge rebound is due oversold, but that one is not turn my +ve view with mkt.

For s/term trading- think they shall enter.

But for l/term (going fwd until 1Q 2009), i think the mkt is -ve. Major contry is funding the finance market, so who shall pay for the funding? what is the significant issue will come after funding? What happen if bank fail deliver the deal? No ofense, just my view. happy Sharing.

Ivan said...

Dali Sifu,

Well done.
thanks for mark a "label" in your recently article. I realise it.

It is use for us to track some article easily .yoyo :D

Andrew Chua said...

ivan,

me? cute? nono, me not cute... Miss Ramadhani is cute... me just a normal penniless guy...

ya going together is a great idea... cos if we combine power maybe can raise enough funds to buy her a better dinner... the most i can afford now is Ramli Burger 'Special'...

but i dunno how we should split the investment returns though (if any)...

Ivan said...

Andrew chua,

Thanks for your reply.
Haha . .I am sure , you are a funny guy :D

happy sharing. .
read dali blog is much easy...
the more i read , the more i know even my know and it might be a chance to improve my english as well :D

(of course, not all article i spend time to read word by word)