EOD Update (27 April 2009)

1. I was initially hesitant to sell down partially after the recent sharp market run up, although was looking at some pretty good percentage gains on recent purchases.

2. The general consensus was also that the market was overbought and due for a correction.

3. Even though I personally felt that there weren't sufficient concrete reasons to justify such a sharp market rise, I felt I could ride through any short-term correction. Generally, I don't like to do short-term trades.

4. This is because I totally suck at market timing and so prefer to hold long-term if I have managed to pick up something I like at a cheap price, as I have no confidence I will be able to make more by getting back in again at the right time.

5. However, the current swine/pig/bird/human flu outbreak has really spooked me. The rate it has spread and the number of deaths in Mexico (reportedly >100 so far) shows it is not something to simply brush aside. The scariest part is that is has shown amazing ability to jump from human-to-human (unlike the HN51 bird flu virus which required contact with infected birds).

6. The last time something global like that happened was the SARS scare. I can still remember how it brought global travel and hospitality industries to a halt seemingly overnight. Businesses suffered as people stayed at home and some offices and factories were closed. Eventually stock and property markets were all badly hit (HK being one good example).

7. So while I was initially willing to hang on to recent acquisitions for the whole nine yards, the entire scenario has changed now. You don't wanna screw around with an epidemic scare. As such, I have decided to take profit on some of my MUHIBAH. Although the price was not great (compared to the recent high of 1.30), it's probably better to be safe than sorry.

Latest disposal:

MUHIBAH: -10,000 (1.138) ... Balance 30,000


/ichithekiller