Thursday, July 09, 2009

Markets Assessment

Its been more than a week since I have posted that equity markets in general looked tired. Over the past few trading days basically reinforced my views. Markets have had a brilliant run for most of the first half of 2009. Generally, to sustain a bullish run for more than two months is difficult. In a normal market, you should be thankful to get two phases of bull run in a year, with each not lasting more than 2 months. Hence one should be thankful already. To be always 100% invested in markets is to make bloody sure that you want to be caught in a downtrend. Unless you are a big long term investors of the buy and hold mentality, you should find time to reduce your equity exposure every now and then, especially when it is so plain to read well.

Markets like Malaysia is mainly a trend and momentum market, thus rewarding those who trade. Its like a house that throws a party every 6 months, why show up when no one is around? Take your trading profits and go for a holiday. Get back in when conditions are better. I do think the last quarter and the first quarter next year could shape to be good markets for equity. Till then, take a break.

p/s photos: Janine Zhang


KoSong Cafe said...

"Take your trading profits and go for a holiday" reminds me of the late Leon Richardson who used to write for the defunct Asia Magazine. What a wonderful world for those who knows the market!

k said...


hng said...

In current sluggish market, frequent trading to make contra or swing trading become difficult.

Although stay invested may not be good idea, but i do lock most of the capital in defensive sector such as REITs instead of pull off from market. Most of the REITs are due to declare income by end of this month, which is expected to have at least 5% for semi-annual payout. This payout is like property rental income and sustainable