It seems with the rally these few days, the market has bottomed.

Glad you liked it.

I think the last 1 or 2 months of the drop in the KLCI index is mostly due to foreign investors pulling out their funds. Hence the big selldown and the sudden drop in the KLCI. I think most of the foreign funds have more or less been pulled out of the KLCI.

The next drop in the KLCI will be more gradual, when companies start to report less than expected earnings, or even losses.

Then retrenchment comes and people sell off their stocks to pay their bills. This,.. I think would be the last stage of drop in the KLCI.

Do you agree with my projection? What do you think?

Quote

"Companies that say, yes we are affected and we’re modifying our plans to cope with the challenging environment – buy these companies.

“Companies that say, no we’re not affected – sell these companies, as they have no sense of realism!” says Mowat.

End Quote

http://biz.thestar.com.my/news/story.asp?f...06&sec=business

The 2nd sentence sounds so familiar.... like I've heard someone said before that Malaysia is insulated and is not affected by the financial crisis in US. There you have it. Anybody who says Malaysia is not affected have no sense of realism.