Nooruladha’s Weblog


Contrarian mantra
August 6, 2009, 1:57 am
Filed under: Investment Story, Thoughts | Tags:

I am perplexed as to why the stock market is up, even though the retail consumers are not spending. US ppl are saving more, spending less, jobless at 10%, house price is down and stabilizing. I have been reading a lot on the net, a lot of bloggers are split view on this.

1. Many government can afford to let the economy to correct by itself. This is particularly obvious in US with their stimulus package, but closer to home, immediately after Najib became PM, the stock rise back up to 1000, obviously from instituitional investor money such as PNB, EPF and Tabung Haji. Foreign money is not in, individual investor like me are just cold. I dont know what to do, so I do nothing.

2. Foreign economy is still bad, not many demand. Looking at department of statistics Malaysia the look is not good. Manufacturing export falls, even the rubber / oil / palm oil export is down. The only thing is many Malaysian is still employed, and they probably work for the gomen.

3. Some even proposed that the stock market will rise a bit more, but the correction after this is even worse.

Just wait and see. Save some more.

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