Is Bear Coming to Take Place?

KLCI is now going back to near new high of 1852, compare to the peak of 1873 end of last year. Since the election last year, a lot of people make money from the stock market, easily 5 to 10 folds.

Just look at DSONIC, INARI, HLCAP, HAPSENG, etc, how much they have grow over the past 1 year. Easy money for those dare to buy even growing higher, isn't it!

For those who earned a lot from the stock market over the past 5 to 6 year, are you earning enough?



Well, I can tell you there is never enough. So everyone is making money from the stock market, who is making loss?  Actually no majority is making loss yet, as the investors are now buying high over one another. Today you buy high, tomorrow there will be someone buying higher from you. And thus, you make easy money. But it there really such a good thing happens every day, month and year? Most of us have almost forgotten how the market crash in year 1998, 2001 and 2008.

As you can see, overall the index is still climbing. Once the stock analyst published any so called 'undervalued stock counter' which falls under small / mid cap, everyone is targeting on it and you can see the sudden surge of price and volume. That's very normal as everyone knows. But what I want to bring up is that, is the current index able to sustain or exceeding it's first 1,900?

Just to apply my common sense here. Index is mainly push by surrounded economy and investors' emotion. By looking at the surrounding economy, it doesn't seems continue growing but growing slowly. You can testify this by going out to the commercial areas, banks and retail and see whether the business is better than a couple of years ago. So the index is sustaining mainly based on investors' emotion, especially small cap counters. Investors will not think it is expensive in a very optimistic environment. Same as 1998 / 2008, where the market is at the bottom, most of us think the market is still dipping.

I'm not concluding the market will drop or the bear has come from now on. But regardless you have make money or not, just be extra careful. There is a point where the stock analysts recommending defensive stocks at this point. Those are your hard earn money, isn't it!

Anyway, I will continue to put my 20-30% portfolio in stock market on defensive and undervalue stocks and let it grow. If the market crashes, I have no choice but to either do dollar cost averaging or cut lose and wait for the possible right entry point again.

All the best, folks!

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