Friday, October 24, 2008

Bear Run

When the Bear run (down turn) started in equity market. What is the common question would ask by people? Let me tell you, They will keep asking about the bottom price for blue chip. (Good share).

In Malaysia FBM30 index build up by 30 selected companies. Some Fund manager of unit trust based on this guide to set a portfolio to launch the specific trust fund for investors. Thus, if the selected company could not maintain perform as previous. It could be removed by authority as well as also indirect instruct specific fund manager sell off from specific investment portfolio.

Therefore, as a common investor if you also follow the FBM30 to build up personal investment portfolio. You must be frequently updating the latest information to adjust the investment.
Every time the changing of position/member in FBM30, the specific counter of share would face a heavy transaction. It is also affect the share price run in way of uncertainty.

Hence, to identify the bottom price or lower price of member of FBM30 become important and become necessary. Because if you buying at higher price on specific counter and one day the said counter have been removed by authority, it will bring you facing a big capital loss.

Due to the above, you did noted in my previous 2 months article wrote at here. Keep reminding to everyone AND ASK everyone staying away from equity market. This is because I was in the position of lack of data in hand to identify every counter/company performance after this financial crisis from USA.

Honestly, I am here to inform everyone. Some of the best company in previous report and now still recommend by others people actually has been degrade by me to no value or not worth to invest in the coming five years.

So, no bottom price had set for every counter yet. Maybe you could claim that I had predicted the adjustment would be continues in the equity market in this period of time. But this is a “FACT” and you are correctly predicted my intention/mind.

Still waiting ! Still waiting !

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