Investing in Black December

Within a space of 10 days I witness all my stocks come tumbling down. By the way the plantation and oil and gas have started the rot well before that. My capital depreciation mimicked the one in 2008 though to most big-boy league investors, losing 75k  on paper is nothing to shout about, for small-time ones, it's something to learn from. The important thing here is to have the staying power.

The current rout in our stock market is due in part to the falling price of oil and the effects on other oil and gas counters such as PChem, SKpetro and Icon. As a result the financial counters like Maybank  follow in tandem. The low crude palm oil (CPO) price has already affected the plantation sector for more than 11 months now. I only have Bplant and due to its being well-established, the decline in its price is not as alarming unlike my O&G counter, Icon, a new kid on the block. My other bad let-down counter is Caring, a pharmaceutical and healthcare/personal care products  chain, another newbie on the stock market. This one I regard as an ugly stock, a terribly bad investment and will definitely off load it as soon as my loss on it is manageable and compensated for by my other counters. By the way, this stock might go up again once its wealthy owners decide to perk it.

Caring: Gradual decline since August
Source- Bursa Malaysia

I noticed the recent surge in price of my telco stocks namely TM and MAXIS but as per my investing strategy, I have refused to sell them and in less than a week, the gain was wiped off by almost by 50%. This development is attributed to foreign selling on our Bursa, as they say, Christmas comes early to those foreign funds eager to dress up their portfolios before the start of the new year which is fast approaching.

TM: The gradual rise and the steep tumble
Source - Bursa Malaysia

MAXIS: Tumbling as well in December

Source- Bursa Malaysia

The hope for a pre-holiday stock market rally this December has gone to the wind. In fact this December has become a black one for many investors. For some of us this is the time to pick up those stocks which have been overvalued a number of months ago and wait for the bull to return because it sure will return.

You've got to stay positive in all this up and down of the market. Here's hoping a Black December's giving light to making more in the future.

In the meantime, hold on tight to the rail of your roller coaster guys!