Malaysians used to look at the indicators in the US market to determine whether their own market will go up or down. And it is considered a useful guide for many years due to the significant positive correlation between DowJones and KLCI. But that is not what I am going to discuss now.
The US market went up about 7% yesterday. Every investor and speculator, i believe, expect the local market to follow the huge rally in US (but of course not the same percentage point). KLCI up 2.5% yesterday. Today, maybe the market can go up much more, 3-4%?? I said "maybe" because I dont know whether the market will go up or down. Honestly, I also "think" it will go up (lol). The result? This morning the market went up 1.4%! I am right (proud?), so does everyone out there. So what?? Why should you be happy when the market goes up? Do you have any shares to sell? Then why so excited?
Time to ponder: "Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to BUY wisely when prices fall sharply and to SELL wisely when they advance a great deal." - Benjamin Graham
As a buyer, shouldnt you be excited when the market goes down? The low prices provide you the opportunity to buy more of the same stock. Just like shopping, you should buy more when there is SALES. Why are you not buying when you see - Sales!! Discount up to 90%!! 50% off !! 70% off !! In my opinion, the best time to buy stock is when the market goes DOWN, not UP. Like this, you can buy LOW and sell high; not buy HIGH, sell higher (or LOW)!
Time to ponder: "Our business is making excellent purchases - not making extraordinary sales." - Warren Buffett
In the first half, the market closed at 877.4, down 0.90 points or 0.1%. Now you should be happy if you dont have shares to sell.