Jul 7, 2008

KLSE 1123 < CHEAP ?>

Political uncertainty and inflation worry make Bursa Malaysia Retreat from year high 1500 to current around 1123, Many punter are away from market since 308 , post election.........

Does current stocks price value cheap or reverse? of course compare to 1500 point.. the entry point now is much lower . the question will be deep down said below 1000 point... wow... another 15% from current price!~~~

In my opinion Inflation is something unavoidable and will continuous impact on our market. High fuel price and commodities always is enemy of equity market. There are many people blame on speculator to make oil surge and the bubble may burst once they left the market ? Does it true?
Well, there are other opinion that is naturally demand increase (china , India....) and constraint on supply (Natural source) . There is a lot of supporter believe in for long term, natural resource like oil... and other commodities will end... since continuous explosion. Does the price support current level near Usd150 per ballet . or Usd 200, 250...... as their predict. Honour's I donno the answer and no body can answer too.
Political uncertainty. I believe this is short term for equity, over the long run..... political risks should be managed by good administration system. Many people will not agreed with this statement. Malaysia administrative system is under develop by British system which well develop and easy administrative. Our problem here is execution and human Bias to make system unworkable. If changing the government will affect our basic/fundamental administrative system. I fully confidence with the risk of political may not hurt our good system build up...
Any unreasonable deep in political link, government link stock is good opportunity to hold in. Of course must be careful to those incompetent company I.e those company only able to gain company contract with unreasonable price! I would not mention which counter are they. Easily you can find info for them in market.

Third and not least, for short term holding on commodities and oil n gas counter is based option to hedged the inflation risk and is current trend. But... if oil drop said 10% ore 20% , certainly there is rebound on equity. By that time who is gainer?? Where inflation risk is erase and... political stable. So think wisely and act correctly before investment.

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