Worst is Over? how about tomorrow
Some Developing markets, like India index break records of 32% in just past a month. I believe some of the reader here who manage to capture this rebound sure have handsome return. No matter you buy Bursa stocks or index funds. Almost all the central bank now fighting in "printing money game".What is implication on it? Money flow everywhere, This not only happen in US, even China initially a bit reluctant to joining the game, now also fighting on it.
When Fund over flow, some will flow to market, I.e any market; Commodities or Equity. This can be see in many commodities index also have similar perform as compare equity. Now they have worry of next commodities boom and finally will lead by another round of inflation boom.
How serious on it? No body know. If you go hawker centre orany hypermarket . you will notice food prices not reduce as report said low inflation rates, ! pack of 10 kg rice still cost us RM50 compare last time RM30++. Jusy imagine another round of inflation come, What is the implication of the rice price? 10 kg rice may go to rm 100 per packs. my god~ does this will happen? Yes. If projection is do it correctly.
What we need to do now? Putting money in bank or pillow? well, low interest rates in bank definetely not enough for cover inflation rates, wealth will gone! Equity and other tools in investment. I may said "yes", but violative and timing of enter and leaving market became important compare old day.
Now is good time to enter or profit taking. My prediction is, market will still rebound, for those not yet enter into game. I will said you are losses the golden chance to cape high return. Entering now will facing higher risks then before. I may said for those not yet enter, still can be enter by stages, may be with lower % of commitmment. for those entering i may said, hold for while, of course some adjustment may be coming soon. The game is started not yet end by tomorrow.