A Golden Oppecunity In Crisis

I have keep follow ETF in Malaysia since begin of last year. ETF is conman in Singapore and US but still new in Malaysia.

Up to now only 3 ETF listed in Malaysia and one of it is FB30ETF. This share cover 30 share company listed in KLCI the detail of the company is in this link... FB30ETF
Since the fund lanch at July 2007, highest the share price short up to arond RM10 and now the price drop to RM 5.40 almost 50% value loss. This ETF will follow KLCI index move because 30 company in this ETF is also in 100 company build up the KLCI index.

The oppecunity to make money in long term is, if KLCI will drop more lower to end up at 600 point by this year sure FB30ETF will drop too ( base on my calculation is RM4.00 ), by that time it's a good entry into this share. If we can hold this fund for 2 year sure the KLCI index will bounds up back to 900 point and by that time FB30ETF will be RM6.00, 50% incress from original investment.

One thing good is the risk for the share price drop to zero is vary minimum compare with buying individual share, so sometime crisis is a golden oppecunity.

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Investment Idea

My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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2 comments:

Elvis2020 March 15, 2009 at 2:08 PM: I agree with you. The reason why i am buying is that the banking crisis looks contained. The risk of banks going bust have recessed following last week news. This is a very good piece of news! The speed of containing this fundamental crisis is commentable. Start buying guys!
East Point Trading March 17, 2009 at 8:45 AM: I think the KLCI will go down more after Banking sector sell down and follow by CPO drop at 2 half this year.I think we may start buy after June.

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