Though I am a strong believer in technical analysis, I would also like to do some bargain hunting, especially during the crisis, like now!
Warren Buffett is famous for his contrariant theory. When most of the people are in great fear, he loves to be greedy! Now, he is out there buying Goldman, GE, etc... So, what should we do now?
Given the market sentiment, is it a briliant way to jump in the market and do some investing? The market in Malaysia is a bit different from others because politic issue shall be taken into account. No matter how great the stock is, the usntable politic on top of weak market sentiment is expected to drag down those valued stocks.
Does it mean that we just wait and do nothing? Can we afford to miss the chance? Crisis does not happen every year! Every 10 years probably is not uncommon. However, when can we expect the next event that will drag down Lehman, BearStern, the "Double F" Brother, WAMU, etc...Some of them has been operating in Wall Street for more than a century!!! And yet, what happen to them?
Questions pop up in your mind?
1. How we select good stocks? As cheap as possible like penny stocks or must be as renown/reputable stocks like P Bank/ Maybank or any other big banks?
2. What makes you think it is a bargain?
3. Timing, timing, timing? When is the right time?
4. and so on...
In the coming days, I will be sharing some of the techniques generally adopted by some of the the world famous investors and shortlist some potential candidates in KLSE.
Any comments are welcomed!
