Thursday 25 April 2013

Election Jitters, and My Prediction

Well, in case you didn't already realize, the retailer market in Bursa is just pathetic. 
Since people already expected a "bad" market since last year February, they have already left the market more or less.
A lot more lost money in Genneva Gold as well. Now that Gold prices have tanked, I wonder what they have to say for themselves.

Thus, the idea of investors selling off before elections, are quite "low in likeliness" as the funds have been supporting the market. 
Foreign and local, all are buying and pushing the markets higher, as Malaysian stocks are considered "safe haven" historically speaking.
And our blue chip counters pay good dividends. 

The search for yield highlights Malaysian companies' ability to stand tall during crisis. 

Election jitters aside, even if incumbent loses majority, the market might still go up. 

Why? The parties related to the new power will push it up, to show "the people's support"
If incumbent retains majority, the market will go up even more to also show "the people's support" 

That said, you should be looking at worldwide situation where corporate profits are shrinking, and think to yourself, where else can funds search for yield? 

Answer is "emerging markets" like Malaysia. Stay away from Airlines, and Property developers for now. Time to move in to more "defensive" stocks.


But definitely, own rubber glove counters.

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