Global markets tumbled again due to:
1. The contagion effect of sub-prime mortgage issue.
2. Winding down on Yen Carry Trade cousing commodities prices tumbled sharply. Oil price today hit USD$64.
3. Consumer spending power deterioting badly in US and Europe and will affect the global demand for goods. Therefore, the chain effect will spread widely and fast to whole world.
Personal views on the timing to enter shares market;
1. The weak global consumer consumption will turn bad after Christmas and Chinese New Year.
2. Global production figures will reduce and jobless rate will increase sharply.
Therefore, the right timing to enter may be somewhere after May/June 2009. Unless some meaningful fiscal policies take and help to boost the economy.
Current strategies for existing portfolio will be :
1. Take profit for TM@3.36 and realised profit of RM1,600. Hold cash
2. Buy t0 average NCB 10,000 shares@2.30. Buy to average TMI 2,000 shares@4.60.
Strategies:Investment amount = RM250,000 Start date: 15 August 2008 Target Return: 30% p.a
Equity Investment: Fund =RM151,400 , Invested =RM113,500
Buy Genting 10,000@5.15
Buy Genting 2,000@4.60 ( Average price is RM5.06 )
Buy NCB 10,000@3.00
Buy NCB 10,000@2.30 ( Average price is RM2.65 )
Futures & Options Investment:Amount = RM50,000 (Open position)
Short 2 FKLI Contract @845 points
Money Market: 3% retutn : Amount =RM50,000
As at 25-9-2008= Interest return is RM657
From 26-9-08 to 25-10-2008 interest return is RM123.28 ( Total interest return will be RM780)
