Thursday, February 24, 2011

Marking Time

Well, I am sure many readers would be a bit disappointed that I haven't been writing about the markets for sometime. I mean, what is there to write home about. When things happen that overwhelms the sentiment of the markets, and its beyond your control or predictive powers, either you cut your holdings or wait. I think both are OK strategies.

No point asking you to buy more now, as if we always have stacks of available credit lines to do that. The "revolution has gone a bit viral" as other nations think that they can emulate what happened in Egypt in their own countries. Not many will succeed but there will be an extended period of turmoil and uncertainty.

But there is some light from these developments, I think all governments that have been treating their citizens with disdain, contempt, lack of respect for their rights ... should now be more circumspect. I would like to see democracy succeed even more but the reality is its a process. The wheels are turning and you can only pull a wool over the people's eyes some of the time.

Is there anything inherently wrong with the markets? I don't think so. The selling by foreign funds may have been triggered back in January as some of the more cautious ones may have gotten wind of the growing unrest in Egypt, good on them. Now we are stuck in a bad movie which we can walk out (cut losses) or sit it out and complain and moan (like most are doing). The truth is, its a short movie, they will be showing Avatar after this.


cina.fong said...

U nailed it Mr Dali, never disappointed as always

Steven said...

Hi Dali,

The selling pressure seems to be rather strong and in certain cases, it just does not make sense. For eg. IJM reported that its earnings rose but today, it dropped 46 sen before picking up to a drop of 24 sen.

Should one cut loss now since one is not sure of how far the drop will go?

Loo said...

The market will always find a reason (more like an excuse) when the market corrects. But it is these times of crisis that stocks are cheaper and buying opportunities are plenty. Don't we always regret and says, "I should have bought", after the market moves back up again.

mr. lim said...

In every cloud there is a silver lining.

Those who invest based on fundamentals of the companies should not worry too much.

Agreed as Dali, this bad dream will soon disappear.

Avatar in blue ray mode will bring out the smiles again.

cina.fong said...

Boy, its the market that is making my grammar so atrocious today. Pardon me. Too late to cut too stuck to get, its a lose lose situation here fellas

mapsscom said...

MR.LOO=ur spot on.
MR.DALI= ur timing is exquisite.
FOR ALL OF US=yeah.time to buy again.check the fundamentals n hold.
the moment has arrived.

twc said...

A time like this with sharp drops even for stocks with strong fundamentals is really a good opportunity to pick up (quality stocks) provided one has the "bullet" to hold.


ong said...

I like this posting a lot, really mean a lot. Generally the market is over reacted but this is how big players play their game. I advise go for gold or silver ( either hard, investment accounts of ETFs )to hedge this coming market changes.