How A Market Melt Up - Malaysian Penny Stocks
So, the benchmark Malaysian Penny Stocks Index (FBMACE) just went into melt up mode.
The indices were almost near its all time low on March and now has broken all time high and more than tripled in a matter of 5 months.
What is going on?
Simple. The Malaysian Market is SMALL in the grand scheme of things. There is nothing Fundamentally strong about Malaysian economy, in fact we are in recession.
A simple analogy, when you have a tank of water trying to fit into a cup, that's what happened. The Central Banks globally has just sent a tidal wave of unprecedented level. Therefore all of this money is going to go somewhere.
I doubt Malaysians or even Malaysian Funds have enough fund to pump this market. This market is certainly driven by foreign fund managers looking for cheap equities globally.
Well, Malaysian equities are no longer cheap and we are about to enter expensive or bubble mode.
I don't expect good things to happen after this, the ultimate corrections and crash will happen and many newbies and retailers are going to be left holding the bags. On all the pump and dump that is going. Reasons why I never tell anyone to enter the market now and shrug off any people who contacted me to ask about the market.
I know it will be the top of bubble when people who never talked to me for years suddenly call me up and talk to me.
Market always move in cycle. Anyone who try to BET AGAINST central banks are idiots. You either hold cash, hard assests or you remain invested.
Another reasons why most rich people in the world are not short sellers.
I expect this run up will continue for some time, then, we will peak. In the meantime, there will be many stocks that wll do 10-20x or even 50x. And then that's the end of it.
Don't reach out to me. You don't need to and I don't have time to. Sorry.
Regards.
The indices were almost near its all time low on March and now has broken all time high and more than tripled in a matter of 5 months.
What is going on?
Simple. The Malaysian Market is SMALL in the grand scheme of things. There is nothing Fundamentally strong about Malaysian economy, in fact we are in recession.
A simple analogy, when you have a tank of water trying to fit into a cup, that's what happened. The Central Banks globally has just sent a tidal wave of unprecedented level. Therefore all of this money is going to go somewhere.
I doubt Malaysians or even Malaysian Funds have enough fund to pump this market. This market is certainly driven by foreign fund managers looking for cheap equities globally.
Well, Malaysian equities are no longer cheap and we are about to enter expensive or bubble mode.
I don't expect good things to happen after this, the ultimate corrections and crash will happen and many newbies and retailers are going to be left holding the bags. On all the pump and dump that is going. Reasons why I never tell anyone to enter the market now and shrug off any people who contacted me to ask about the market.
I know it will be the top of bubble when people who never talked to me for years suddenly call me up and talk to me.
Market always move in cycle. Anyone who try to BET AGAINST central banks are idiots. You either hold cash, hard assests or you remain invested.
Another reasons why most rich people in the world are not short sellers.
I expect this run up will continue for some time, then, we will peak. In the meantime, there will be many stocks that wll do 10-20x or even 50x. And then that's the end of it.
Don't reach out to me. You don't need to and I don't have time to. Sorry.
Regards.
Penafian
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