EOD Update (20 June 2006)

In a bit of a quandary now. One one hand, several stocks on Bursa have come down to pretty attractive levels. On the other hand, we all know that any big drop in the US (followed by European and Asian) markets will have a similar negative effect on Bursa Malaysia stocks.

So to buy now would mean sleepless nights wondering whether the DJIA has crashed (or is crashing). To not buy may mean missing a Bursa rally, assuming the US Fed manages to keep things on an even keel. The thing is, I have this nagging feeling that the US markets have not really fallen enough yet, that inflation will continue to be a problem and that the dollar will continue to depreciate. Couple this with falling real estate prices and rising mortgage and consumer credit defaults and the nagging feeling gets even stronger. So what to do? The right thing to do is probably to tread lightly and pick sectors which will be less hit by a US economic slowdown and may even be helped by a falling dollar. It might mean missing rallies in some other stocks, but in the long run, it's probably a safer bet.

Latest purchase:

MUHIBAH: +5,000 (1.41) ... Total 10,000


/ichithekiller