Tuesday, January 18, 2011

RM 2.90 per USD

Ringgit Malaysia against USD yesterday closed higher again. What is the maximum level on that? Recently we can see some foreign funds withdrawn from Indonesia. So, the impact was happen on shares market. About 2 weeks time the market already loss about 5%. That is an alert on KLCI, if foreign funds pull out that will a hazard.

In my opinion, that will not be so fast happen in KLCI. RM still got some profit bargain against USD. My prediction it can reach 2.90 per USD. In order to maintain such level, local businessman should not based on international trend to impose a higher price on daily need products. There is not excuse for them because currency rate being change accordingly.

So, if businessman said there is cost increase in import price. It will help foreign funds easily attack local market with less cost. The hazard impacts come fast and strong.

Market analysis keep on telling us KLCI still got 15% profit margin to go. Based on this, they can calculate the index will shut up 1700 or 1800 points. Too simple thinking and also is ridiculous imagination. If they are agree this is a super bull run. And so if market can break certain point it become unlimited run and anytime could touch 2000 or higher index points.

So, any calculations just suitable use it for normal market run. However, do not use mathematic or statistic to measure your holding stocks. Just ask yourself is it the price you target it has been achieve in the market. That is yours best selling price on that.

Finally, you will feel happy because any adjustment or horrible run nothing affected yours investment. Price up can easily mislead you go to wrong direction and also easy tackle you greedy desire. Are you ready to meet this challenge?

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