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2010-09-20

The falling USD (and the strengthening Ringgit) is the main cause that has been motivating foreign funds to put their money in Malaysia equities

The falling USD (and the strengthening Ringgit) is the main cause that has been motivating foreign funds to put their money in Malaysia equities since Jun this year, then investors would want to know the outcome of the U.S. Federal Open Market Committee meeting scheduled on Tuesday (21 Sep).

While the U.S. policymakers are widely anticipated to keep the federal funds rate at near zero level for now, the key takeaways from the language of its accompanying statement – on the U.S. economic conditions, inflation outlook, other financial developments etc – are likely to reaffirm (or alter) the consensus opinion on interest rate / currency markets expectations.

As long as US market weak, I think likely FBM KLCI will go more higher. However if more and more retail investor start to jump in into market in this high price, foreign investor may likely to take some profit.

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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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