I have said in my earlier post, In KLSE, 'Cut & Buy Back' is the best strategy at the appropriate time.
I guess now is the right time to CUT due to the real risk of POLITICAL UNCERTAINTY:-
1)Sabah MP has openly voice out their disappointment over Federal Govt.
2)Actions taken against TUN Dr Mahathir.
3)The possibility of Pakatan Rakyat form new Govt.
4)Split among UMNO & BN.
I have decided to Cut 30%-50% of my holding.
As I always say :'SMALL FISH RUN FASTER THAN THE BIG SHARKS'
8 comments:
what happen to your education fund investment? I have 20 k to invest. i am 49, ex-remisier. i was burnt by transmill last yr. can u give me some advise how i should invest in bursa so that i can make around 1k a mth for my living expenses
Hi! Igcsdv,
I have no answer for your 1K profits per month from initial capital of 20K.
It's unrealistic target. Even the best fund manager can't get this results. they will be regarded 1st class if they can get compounded return of more than 25% p.a.
For long term investment gain,please stick to 'Value Investing'
Regards!
You have excellent timing on your blogs. Mahathir had just quit UMNO, so now the fight (party) is ON.
So, another 100 points down (or gain) on 20 May 2008?
regards
Giap Seng
Hi GS,
I believe the impact of Dr. M resignation will not cause 100 points down, but the political development in the following months is high uncertain, bad for equity market.
最近在股票市场中失利,加上国内的政治不稳定,想分散风险投资.请问你对银行推出的保本低风险投资的structured investment product 有什么看法吗?
I have not done much research on the banker's capital protection structure d investment products.
I am of the opinion this kind of products will not bring much returns to investors. Low risk but low return also. What make it more attractive that normal FD?
Shares is the most rewarding for intelligent investors.
In this uncertain time, you may keep more % of cash, waiting for the 'cheap' value stock to fall.
Should be better than diversify into others products.
what I understand about structure products is the bank will buy ~90% of the asset on fixed income instruments, which upon maturity, will be able to pay back the whole principal the the investor plus management fees for the fund.
The remaining 10% is normally go all out to the highly speculative instruments (warrants, options, etc). Since the 10% exposure is not much, if the speculation by the fund manager turns out to be good, your overall return may probably be around 10% pa. On the other hand, if the speculations incur bad losses, then you can only take back your original capital at the end of the day.
Hence, I agree with KC that it is still better to pick up a good stock, and let the good stock grow. Slowly but surely.
KC, kindly comment if I am wrong.
regards
Giap Seng
"In this uncertain time, you may keep more % of cash, waiting for the 'cheap' value stock to fall."
I like this statement. Currently, that is best strategy to do in Bursa market.
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