We suggest a modest buy in if KLCI drop below 1600

On Wednesday, KLSE will reopen after lunar Chinese New Year celebration. Following with a week or two will probably the announcement of a long waited General Election. This time is a little jitter and important as after many hip and hop from both ruling party and opposition. The chances are almost equal this time round. It will be a close call competition between both.

As we continue to adopt defensively stay invested strategy. We think money get smaller and a potential global crisis may come again. Thus we will continuous favor asset or commodities related counters. Of course with a reasonable valuation of max PE 10 times as our target.

A drop during the election will give a good chance to enter the market in stages. Split your fund into few pieces and start bargain hunting in cautiously weekly basis.