It seems that the market is really not good. Malaysia is still struggling with political issues here and there. The IPPs are in divesting state due to the tax structure. Plantation stocks are going very low now due to the commodities have been going down to three years back.

Plus, the US and Europe are still at aftermath of the subprime crisis. Lehman is at the verge of bankrupt. Merill Lynch was bailed out from the US fed government. They are looking into AIG.

Robert said before the index might reach 800+pts. The market will continue to show down trend as it is really dampen everyone spirit; the investor, retailers, fund managers and public. It is really bad for 90% of the people and probably good for 10% of the people. What really surprise me was the insights from Robert. As a investor like him, does everyone needs that kind of insights that able to see through everything? Well, if we need to win, the answer is yes. But how can we able to reach that kind of level?

Quote

Talking about Stay Away from Investment now

Our Bank Negara Govenor just annouced that we will postpone the review of interest rate. Last month, our interest rate peaked at 7.7%. But yesterday, she said YTD interest rate is only at 3.7%. Can anyone believe this?? By holding back the interest rate, she claimed it will regain back the investors' confidence.

Besides that, the oil prices also dropping. It might be hovering around $100 to $130 per barrel. All these non-replenishable comodities will only go up and up. The oil will come to $200 per barrel. It is just a matter of time.

Anyway, I will keep my eye open. Whatever going to happen from now is going to be interesting.

Quote

Stay Away from Investment now

Today is one of my best day. I get to meet my ex-GM, Robert. It is been nearly a year we didn't meet together and have a private nice talk and coffee.

 

He is still as informative, sharp, detail and super planner as ever. We talked about much things then later to the stock market. He said our market now is just the beginning of the recession. Not only about the commodities at record high but the one which going to impact most is the revise plan of the interest rate. It is clearly a sign the nightmare of recession just begin. The interest rate is going to be heighten up due to the inflation rate which reported at 6%. Our interest rate now is far too low from that. If the rate is revised, the banks will have to tighten all the loans, IOUs, bonds and etc which they offer to the people. They need to do this as they need to clear out those low middle income earners who cannot afford to cope with the new interest rate. Soon, the banks will control and tighten the money they loan out to the public. Public will start to feel the tightening of that. Everyone (which the middle income earners - the majority) will start to squeesh their pocket money and trying to live much more lower below their means. Eventually, the spending will be less and less which causing the economy to a major slowdown. The stock market will get hit then will crop out to the property market and if the worst case scenario, the depression will come and everything will crumble to fall. Now, we only seeing the seam crack on the bath tube which is only the beginning. No one can stop this and everything will be led into each and other.

 

So, I asked him, "When will be the right buying time to the stock market?"

He said, "Everything will happen in spiral. It would probably take a year from now, but I will wait for more than that. Perhaps, two years."

 

He told me that he already sold all his stocks few months ago. Last month, all his account was cleared. I am totally shocked. I am doing the opposite. I am holding too much now. OMG!! This is crazy for me. He said, "Only the fund managers will give the public a buy call when they want to sell everything off their hand." There are some truth over all his statements and analysis. I trust him because he always win. He is already a millionaire. That's why.