KLCI has surprisingly moving up slowly and steadily towards last record high of 1524 level. In second quarter this year, the KLCI was expected to go through some healthy correction before continue the up trend. But it din not happen, there were only some minor selling pressure kicked in - the interference to the market. It is mainly due to the large amount of hot money kept flowing in to the equities as it has been treated as one of the best ROI area. As far as the global economy is concerned, there are still a lot of uncertainties around, such as the economy recovering momentum & sustainability? Stubburn high unemployment rate? Asian economy overheated - bubble? western economy losing recovering steam......
As of current market situation, most of the index counters are approaching the new 12 months high and subsequently making them look unattractive - overprice. Thus, it is recommended to be extra cautious in picking a good and strong fundamental companies. The task is just getting tougher and tougher. However, there are still a lot of small to mid cap counters which are so called the "hidden jewels" in the market. Please find below as some of my recommendations:
- Profit taking on index & mid cap counters which is hovering at the new high area
- Apply 70% cash vs 30% equities strategy.
- Stay sidelines with patience, wait for clearer economy/market indicators to reaffrim bullish condition.
- Research on 3rd quarter financial report, pick the strong growth stocks.
- Listed the favorite stocks, bargain hunting during market/individual stock correction.
- Lastly, wait for the fruitful ROI, and profit taking during CNY 2011.
No comments:
Post a Comment