Investment is business, business is investment, even speculation needs fundamental

I always believe that to make one with more experience in investment, it is a critical factor to understand business.  Only with that knowledge you will understand the fundamental of a stock.  Even when it comes to speculation, you need fundamental knowledge.  gambling is 50/50. Speculation is 70/30 but you still need fundamental knowledge to support your bet.  Finally is fundamental investment which is 90/10.  But there is still a 10% risk in anything.  Thus, the practice of dont put all things in one basket emerged.

Fed gives 2 years more low rates & QE3 hinted – We sell at QE3 if still no control in spending.

Looks like, commodities are going to run faster, really not because of demand and supply rule. It is just your paper money getting de-valued.

By theory, equities, commodities, properties prices will up futher. However, we will sell if they don’t control spending. Any military option from US will also trigger immediate sell as now we do understand how much money burnt on these activities.

Long KLCI at 1441 and added new holding金衛醫療 (HK), Cheetah and AHP REITs

We continue our nibbling into the distressed market.  We believe 1440 – 1460 currently is a very good support.  As of now, Dow Jones up more then 200 pts and if Bernake able to announce something special, or may be Qe3 related, 1500 level is definitely there.  But we will monitor and short term possible rebound will trigger our sell off back to the market.  We will see how.

KLCI will see this crisis bottom at 1440-1460 max.

Since many things are discounted, we feel that this round crisis the max will be around 1440 – 1460.  It is the best time to buy high beta and recent celebrity stocks that pull back a lot.  Recommend Tasco, Layhong, MBSB, Amedia, AFG and its call warrants.

We will consider to long KLCI if futures reaches 1450-1460.

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