Bursa is Hot

Hot Hot Hot! With all the good news surrounding Bursa, buyers flock into the stock market. This is similar to when our Ex Prime Minister Badawi announced the NEP (New Economic Plan) a few years back. There are also rumors before the NEP back in 2005. He visited a lots of countries and received a lots of support before the announcement. Stock market shot up after that. (We also know how the stock market plummeted in 2008)

Will this time be the same? It all depends on the PE of Bursa. I don't have the number with me. It can be calculated by averaging all the Blue Chips' PE.

The market is very hot now as many stocks can give more than 10% return at any time due to speculations and syndications. My experience tells me to watch the market closely and cut loss if there is any correction anytime. "Be Fearful When Others Are Greedy" is always the best motto in stock investment. But I think the rally may last for while until there is a very bad news from oversea stock market. We'll see.

I recently purchased 10 lots of TITAN and looking for more potential good stocks to jump into in order to take advantage of this rally. This rally may be short-lived or last for a few months. Nobody knows. The best strategy is to buy good company stocks as foreign investors like: Good Management, Daily Consumption or Gaming. For Malaysia, plantation companies are of good selling point given the geographical advantage of this country.