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The market will remain weak for the time being. Think of the following;
1)US Presidential Election is in First week of November. The New President will only be sworn in In January to start his era of economic reform.
2)Some of the stock are good to buy now and you cannot pick the lowest. Just look at fundamental and I mean, PE, NTA, Dividen Payout only.
3)Stay away from property developer, REIT and construction industry.
4)Primary industries such as Plam oil is still the keys support for our economy and this should be a good pick. Some have low PE now, below 7.
5)Banking sector may shrink due to bank being more careful in lending, but this is an evergreen industry. Everyone needs them.
6) Food base and essential business will remain strong, such as telco.
7)Transport and energy sector will see better margin now that fosile fuel prices is coming down and there is no immediate treat for oil to return to USD100 again. Even Goldman has admit that their outlook for oil hitting USD 150.0 per barrel in july is no longer realistic and they have revised it down to USD 70. In years to come, fuel cost will never be cheap anymore and there is no reason for oil prices to dip below this level too. Alternative Energy is going to be very much on every governments list. Even Malaysia is talking about Nuclear energy.
8) Do not buy based on analyst calls. As I mention before, analytical tools, which ever they use, is just a tool and they only get it right when market is "in" an up trend or "in" down trend. Never before, after and in between! The few who warm above the current situation last year, only got their appreciation now.
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Tbull
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