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Worst in the world maybe but we are turning around soon. (BURSA)

Worst in the world maybe but we are turning around soon. (BURSA)

I do not think it is wise to put all our eggs (money) into the same basket. Before my property investment journey (I define my property investment journey from the 2nd property onwards), I have started and still continuing with unit trust and shares too. The results were okay for unit trust while for the stocks, it is more of a buy and wait these days. Well, at least until I read some news about the company some months later. Yes, my unit trust is on a monthly basis and it has been no less than 15 years I think. (I am a Public Mutual Gold customer too). For those investing into stocks, the following will be good news. That word may just be to ‘hang On…’

Article in thestar.com.my Macquarie Group said Malaysia, which was the world’s worst major equity market, may be turning around soon. Reason is because of reforms at state-linked companies, more political clarity and stimulus. It said that there is now a possibility of the benchmark FTSE Bursa Malaysia KLCI Index to surge to 1,800 in the base scenario, or even reach 1,900 in the bullish case. These are the causes, Macquarie said. “Fiscal stimulus, per resurrection of ECRL and Bandar Malaysia projects, is returning, oil prices are exceeding target and liquidity is ample,” the bank said in the report. “ Macquarie expects similar developments to happen with MRT 3 and the Singapore-Kuala Lumpur high-speed rail project, as well as in the telecom sector and within the Petroliam Nasional Bhd. group of companies. Macquarie also prefers “yield-resilient” plays, corporate banks, government-linked companies. Article in thestar.com.my

The story usually goes like this. The economy moves much faster than predicted. Good news filtered to the stock market. People have more confidence with the companies’ future profits and starts to buy stocks while pushing valuations of these stocks higher. More people gained from the property market and sentiment starts to become positive all around. The people who were thinking about upgrading to a bigger home will decide to go ahead. The people who were thinking if they should buy but was worried about the state of economy will now have confidence and will sign the Sale and Purchase Agreement. The story goes on and the cycle of positive sentiment may just start to move. For now, negative sentiment is still generally prevailing. Let’s wish Macquarie Group is right! Happy investing.

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<Featured Image is courtesy of Stock Photos from bluebay >

Article written and edited by Charles. News article summarised by Dina Batrisyia.

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