Don’t you think amidst the global financial crisis over the weeks, our market has been very well maintained in terms of the slow slide on the exchange? It looks as if there was a magic hand sustaining the market and allowing it to drop only bit by bit. However, I didn’t think it could be sustained long enough as the rest of the world comes tumbling down with the fear of global recession hitting us. And so the final curtain comes down today, with the KLCI being at its lowest since June 2006, at 914.35 points this afternoon.
Crude oil price has also slide further to a shocking US$73.33 per barrel. Do we hear another drop in our local fuel price? I doubt so. Not right now anyway when it has just come down by RM0.15 just a couple days ago.
And how’s gold doing alongside the fall of everything else? It has also come down since last week’s high of around RM105 per gram to a mere RM97 per gram. Gold is supposedly a good hedge against the stock exchange because it is supposed to move in opposite directions.
But at the moment, everything is not seen to be moving upwards, so there really isn’t much of a hedge anymore. I’m not sure if gold will continue to slide with the market but if it does, it may not necessarily be a bad thing. It’s time to buy and buy some more. Same goes with the blue chips and fundamentally strong counters on the exchange.
{ 4 comments… read them below or add one }
I hold quite some blue chip counters with good fundamentals…but I also suffered a lot thanks to the panic sellers. Guess i need to hold for 1 year.
I feel that things are starting to turn around, but it’ll be a long and tedious process. Might take 1 – 2 years to clean up.
I guess the only thing you can do is to wait. Since the govt is pumping money into the market, it may not come crumbling down too much. So hold on!
It’s our money
Now I might want to withdraw from EPF. Hahhaa. Just kidding.
Actually, it’s not a bad idea. Quick, find a good reason to take the money out! Better invest it on your own then to let them manage it!