As expected the rally at the stock market is short-lived as it is not driven by fundamentals instead by sentiments probably by news of possible economic recovery especially in the US. There were also talks about the entry of foreign funds being parked in our market and this it seemed had pushed up the prices. At the height of the rally KLCI had reached 1090, the rise was too fast and too soon. I am not surprised that many investors will be selling-off, contributing to the downtrend (translated by fear) and signaling the start of the needed correction.
Investors are taking a breather now and will be looking at the depth of this downtrend, is it a "V" or a "U"? Some will be taking this opportunity to get some bargains, some will take a longer time to snap up the stocks and some will continue looking and by the time they realize it, the prices are too high for them to afford. No risk no gain, now, in which group are you in?
Savvy investors will look at contributing factors and historical data and of course, the companies' fundamentals before they dive in. Yes, if you do not have time to monitor the stocks, please just stick to unit trusts and leave the excitement to risk-loving nerds!
Looks to me the stock sale is just starting but unlike the departmental stores' sale where shoppers come in droves, you will notice that the shoppers (investors) will tend to stay away from this sale. They instead will stomp in when the market is selling at rising prices... greed is sticking out a mile! I am going to visit this deserted market.....
Investors are taking a breather now and will be looking at the depth of this downtrend, is it a "V" or a "U"? Some will be taking this opportunity to get some bargains, some will take a longer time to snap up the stocks and some will continue looking and by the time they realize it, the prices are too high for them to afford. No risk no gain, now, in which group are you in?
Savvy investors will look at contributing factors and historical data and of course, the companies' fundamentals before they dive in. Yes, if you do not have time to monitor the stocks, please just stick to unit trusts and leave the excitement to risk-loving nerds!
Looks to me the stock sale is just starting but unlike the departmental stores' sale where shoppers come in droves, you will notice that the shoppers (investors) will tend to stay away from this sale. They instead will stomp in when the market is selling at rising prices... greed is sticking out a mile! I am going to visit this deserted market.....
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