Saturday, February 10, 2007

Defying Gravity and The Stock Market

The stock market in Malaysia has been defying gravity for the past few months. As I remember it from the start of October 2006 until know, February 2007, the share index kept on surging upward from about 980points to 1240 as of yesterday.

Whether it is going to continue upwards is yet to be seen but in the end anything that goes up must come down. Have you ever seen aeroplane that continue flying around without landing?

But it is hard to predict when the surging will finally lose it steam. It may take years and by the look of it as long as people feels the situation is positive they will keep buying.

My feeeling is that everyone are collaborating to ensure the situation stays positive.

Comments from foreign research houses, local research houses and politicians simply gave the underlying message there is only one direction for the stock market and it is up, up and away.

From my view as long as one study the fundamental of a company and buys base on fundamental analysis then you can buy companies shares without being afraid of getting burnt.

Else you will have to keep your eye on the stock prices every second to make sure you are also selling when the selling stampede happens.

Well in that case I have to assume that you are not working and have lots of free time or your job is following the stock market.


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