2016: When Most People Bearish, We Bullish

Hi all, ones again we meet up...

2016, many negative we heard from many investor. It seem that everyone already prepare for the worst. The worst were added when so many people had been retrenched by their employer. According from my source, around 6000-7000 oil and worker in Malaysia have been retrenched by their company and they offering Mandatory Sovereign Scheme(MSS) or Voluntary Sovereign Scheme(VSS). This is not include the news about banking sector retrenchment.

Reader, let me tell u my story that may relate to stock market.

There was a company in 2012-2013, that hired massive numbers of employee when they obtain billion of oil and gas job. The interview session and the intake made with an open interview at prestige hotel in Kuala Lumpur. Hundred of people came and some of them get the offer.

Back in 2013-2014, they have been awarded one of the best employee in Malaysia, but today things already changed. Starting end of 2014, when the crude oil slide down from 110USD, they started to layoff people. Last year itself, they release 600 employee out of total around 2500 workers. This year they expect to continue the exercise. Should we gave them award when , the worst employee in 2016?...hehehe...

Below are the list of top employee. So where are they now?...



Top Employee Award :

LINK

http://www.malaysiandigest.com/news/484068-top-10-s-best-companies-in-malaysia-to-work-for.html

http://universumglobal.com/ideal-employer-rankings/student-surveys/malaysia-2014/



What I'm trying to share with u all, that how exactly the economy looks like.

When the economy growth rapidly, everyone are very excited, employer were crazy and offering  jobs, hiring many people and forget about market crash.

What happen recently, it happen another way around to last previous great time. People now days talk about market crash, so many people are fear, even some say Malaysia will bankruptcy.

Many people lost in their mind. If i ask them what is 2-1?, they might answer -1. But reality the answer shall be 1. Thats the analogy I may relate to the major people reaction in current economy situation.

Take a look at George Soros statement about world economy. Almost every years he did mention about economy collapse. Why every year he has to the same thing? Do you think every year market bearish?



ARTICLE About George Soros:

2012-George Soros Talks of Economic Collapse in the West

http://www.thenewamerican.com/economy/economics/item/4538-george-soros-talks-of-economic-collapse-in-the-west

2013-George Soros Bet $1.3 Billion The Stock Market Will Fall

http://www.huffingtonpost.com/2014/02/18/george-soros-stock-market_n_4810434.html

2014-George Soros loads up on bearish market bet

http://www.cnbc.com/2014/08/15/george-soros-loads-up-on-bearish-market-bet.html

2015-Soros says these ‘hellish’ markets make him less bullish
http://www.marketwatch.com/story/soros-says-these-hellish-markets-make-him-less-bullish-2015-01-23
2016-George Soros Sees Crisis in Global Markets That Echoe  
http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says




WHEN EVERYONE BEARISH WE SHOULD BULLISH 

I will react contradict against the market. Some people say I'm crazy and too optimist.

I told them, the Bear or Bull wont never tell when its gonna be happen but it gave u sign.


SIGN OF BULLISH REVERSAL/ MARKET RECOVERY

1. So many people being retrench by their employer

2. Inflation rate keep arising 

3. There so many news appeared in media about market recession

4. Many people complaint about living cost

5. Most of Commodity price at unrealistic price, bottom line price

6. Many company issue for bankruptcy 

7. Property price slowing down.

8. Many people put their money in Fix Deposit

9. Bank started to tighten loan approval



TODAY, WHEN CRUDE OIL PRICE DROP BELOW 30USD, AND CHINA DROP ALMOST 400POINTS, DOW FUTURE ALSO RED, PLUS THERE IS NEWS SOROS SHORTING YUEN BUT MALAYSIAN INDEX KLCI CLOSE GREEN AT 1626 points,WHEN OTHER REGIONAL MARKET ARE RED.

So what is the point to be highlighted here?

When we talk about sentiment, we have to study the overall picture of the market trend. Many people think, KLCI will follow other market sentiment, but I remain bullish from the first day I wrote this blog. Why?

MOST INVESTOR IS OVERACTING TOWARD MARKET SENTIMENT. 

When most people think in the same way, so who gonna make business?

I give u simple analogy, in business how do you want to become competent and different from others?

Do you have to do the same thing what others do? Or you need to think differently?

Thats how economy work. If you do same things what other people do, u will create lots of competition among you, and then u hardly to move forward.

Same goes to stock market, when most people thought bearish, bearish market hardly to move and then it will replace by bullish market.

I'm I correct?

In the next chapter, I will elaborate more on Malaysian Financial Fundamental.

Stay Tune Friends....