Thursday, July 09, 2009
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