Asian markets strong outlook from 2nd half 2010 - 1st half 2011

After the financial crisis hitted the bottom in March 2009, global stock markets have experienced a strong rebound and some of the markets are breaking the pre-crisis high. If we observe and analyse in detail, we are able to easily notice that the rebound was not across the board but it may apply to certain good fundamental stocks only. Those weaker stocks especially the 2nd & 3rd liners are struggling to perform as they have been badly affected by the financial crisis and may encounter a financial problem which may not be able to survive at the end. These are the stocks without strong fundamental financial support, and I strongly advise you never try to speculate or invest into this kind of lousy stocks due to the high risk exposure which potentially leads you to loss all the hard earn money!

Due to the global markets' strong and long run for the past 15 months ago, the global economies started losing steam and heavy profit taking kicks in at the moment. You may notice the market is pretty tough to move up as most of the retailers & investors prefer to stay sideline to observe the market trend. Some of the global markets like China, United States, European markets have experienced heavy sold down since May 2010 due to the slow down in the economy growth. Although the particular economy or stock may still achieving good number of yearly growth rate, but the slow down may happen in the month-month basis. That is the reason sometimes you may notice a stock price down while reporting good yearly growth percentage. This is one of the important skill to pick up in order to avoid mistake in chasing good stocks at the wrong timing with wrong interpretation.

No doubt some of the global markets are struggling to move forward but hovering in the tight range with little investors and retailers participation. There are many strong countries especially in Asian like Singapore, Hong Kong, Korea, Thailand, Indonesia, India and Malaysia are holding pretty strong near the 52-weeks new high level at this moment. Of course not all the stocks are aligned with the market's index movement as it varies between the good stocks and lousy stocks. Please to note that this might be the Prefect Timing for you to easily catch the good stocks as they will be in the "positive region" or "top gainers" list while most of the other counters are in the "negative region" or dropping. From here, you must deeply analyse the good stocks you catched to avoid some speculating cases.

Referring the strong growth in Asian countries, I am confident that we are going to have strong growth in stocks prices in the next 12 months ahead! Nevertheless, it is not recommended to chase an overvalue stocks blindly! In order to make the maximum Return On Investment (ROI), I would strongly suggest to accumulate and invest in good fundamental stocks when markets dip! You may question how to find the good fundamental stocks? I have shared with you one of the easiest way above and will try to share others in the coming post!