Foregin Fund Is Flowing Out From Malaysia
Foreign Fund is flowing out from Malaysia due to US dollar value is going up. May be now you will hear a lot of article said about a correction will be the time to buy, the word buy during correction is correct but the question is when is the correct time to buy in.
Now KLCI is drop below 1050 and I think it is still not the time to buy in into share market due to now the foreign fund is flowing away from Malaysia market and we may not know in this time how march they will pull out cash from share. Base on the chart, a retracement can take the index to slightly below 1,000 points however it does not mean the return of a bear market.
So the correct time to "BUY" in is during most of the foreign fund sale out their share and "SALE" when the foreign fund flow in into Malaysia share market.
3 comments:
I am worried foreign funds wont return to Malaysia for sometime. Based on informations i received, they are pulling out long term capital not only hot money. Venture capitalists will put their money like Vietnam, India or China right now or back to US. It is wiser for anyone to invest in Vietnam due to proximity to China rather than Malaysia which is going through some political uncertainty in long term. Corruption also have gone out of hand with current BN leadership. Too many hands trying to run the country. Najib is looking like worse than Badawi. Some say, the wife is the real PM...
The information I get also showing that some of the foreign funds is end they investment in Malaysia and move to Vietnam.
I also hear some said China will help develop Vietnam economic like last time how china help in Vietnam war.
However I still think this time the correction KLSE will hits below 1,000 but will not hits new low by this year due to same good relationship between Malaysia with China.
About BN leadership, I personally give E-
I am a bit reserved this time around. Firstly, the oil run oledi bust after hitting USD72pbrl. Not much spare money for hedge funds to play around with. Secondly, Malaysia is badly run, we all know that the huge stimulus is for Najib and gang to put in their pocket. Come on, with 60 billion...1 billion for every cronies is enough for a lifetime. Thirdly, royal interference with how our country is run. This is getting out of hand just like corruptions. This is first time become very public. If i am venture capitalists, why would i feed so many people for so little gain?
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