Market in 2012 and 2013- What the Fund Managers Say

I was reading a local paper a few days ago on the market outlook by fund managers particularly in Malaysia. All of them agreed that our market underperformed in 2012 compared to those of our neighbours, Singapore, Thailand and Indonesia. Our market is said to be defensive and has been bogged down by the uncertainties of the looming general election. Certain anxiety has been expressed regarding the anticipated upheaval should there be a change of government or if the present government is returned with a reduced majority.

While the concerns regarding the effects of the Fiscal Cliff in America are expected to be resolved, the sentiment is still cautious with the Eurozone debt crisis  still simmering. Economic data from China has shown some positive trend and the Country is expected to come out of its two-year economic low. Data on jobs and housing from America is also beginning to improve so according to these managers things are looking up in 2013.

Strategies,strategies, strategies

Some managers are still sticking to defensive stocks pending the political outcome following the general election to be called by March 2013. Some are avoiding cyclical performers in the oil and gas as well as construction industries and putting their eggs in finance,plantation and consumers stocks.

Others said they would buy on weakness (when FBM KLCI is below 1601) and sell on strength when the Index goes up to 1700. A good tip for me to also follow and make some money as I have trouble selling my stock, instead getting foolishly high on paper gain!

These big-shot fund managers certainly know what they are talking about as they are not only market-savvy but they also have a vast amount of data/information, economic researchers and stock analysts working for them and they deal with billion of fund so it is good to read about what they are saying.

Guilty pleasure

As I am managing my own little fund, I have to weigh in all the information and make my conclusions and buying and selling decisions which are also based on  readings and experience.

Actually my fund in equities is only 17% of my total portfolios. So delving into stock market is more like a little money-making hobby with ego being inflated and deflated along the way. For what is life without excitement,anticipation joy and slight depression? And now time for that coffee...