Tuesday, October 7, 2008

What is the right time to buy in shares at Equity market?

In fact, nobody would know the support at which level. But these few days, I found that in the coffee shop and cyber chatting room, a lot of super analyst already given you some guide. Like, it would be supported at 960 or can slump down to 800 points. But in the beginning of this year, I remember was told by them, KLSE index hardly and impossible slumped down below 1,200 points.

So, I am here to advise if you are lucky to meet this type of analyst. Please trying your best immediately forget their prediction on KLSE index point. Because they are obviously and purposely bring you to wrong way of investment strategy.

As a responsible analyst, they should proof to you the supporting economic data for his estimated level. But in fact now, nobody could tell you what is the real condition in the global economic. The fundamental of economic has been destroyed by this 2 weeks heavy adjustment on commodity market as well as equity market. Everybody’s effort in this three or four years had burned in the air.

Is it really can’t define the lowest of index? For me, I have some idea maybe can help us or share with your are to identify the lowest: -

a) Refer to two coming quarter results for top 5 listed company for every sector. If turnover and profit adjusted more than 80% to 100%, the lowest is far to meet yet.
b) Refer to other country’s equity market, which they also export the same item to international market.
c) Ask yourself “ Would your fear to buying in at now or not?” If the answer is “No”. There is not the bottom yet.
d) While your received a message from one person who never playing shares in his life, nervously warn you “Do not buy share!” In this period, I can say that the equity market almost reaching the lowest.

The above is based on my own experience to define the future equity market trend. It would not a 100% accurate prediction but at least helping you minimise your risk on investment.

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