Monday, November 24, 2008

Selling force at KLSE

KLSE index today closed at 855 points. When compared with 1st shift of closing, it was increased another 2 points lower. It is indirect given a warning to investors, tomorrow it could be hit lower again.

Actuall, if you had read the report about USA financial crisis. You should aware the hole of outstanding loan amounted to 45 trllion, It was represented about 2.5 times of yearly GDP of USA.

USA's Bank created MBS (Mortgage Backed Securities) for sub prime loan. Investment Bank created CDO(Coliateralised Debt Obligations), CDS (Credit Default Swap) and Sythetic CDO (CDO plus CDS) to accumulated the funds for leverage loan about 20 to 30 times. Hence small amount of 500 billion(sub prime) roll over it as bigger as 45 trillion outstanding loan in the market.
Based on the above data, I am here to say actually in this period of time, I am disagree invest inividual equity in the market. Unless, the said outstanding had been absorbed.
In this period of time, I am ensure my "Short" future contract maintain until spot market touch or close to 830 points.

1 comment:

Ivan said...

really short?
wat happen if tomorrow, margin call again by dealer?
will u offset?