Stuck in the middle...

The market has been very uncertain nowadays, and that happen for some reasons...

Buy, or sell? Hold? Nobody know...

The US has enter into the era of stagnation, stuck in the middle... To increase interest rates? No way, the housing industry is already in quite a big trouble... Oh, so to reduce interest rates? Oh, No, No... The CPI is quite high and in fact, and worst, the act to decrease interest rates (particularly for a few times in this year) could sent a signal to investors that the economy is really in trouble. Both way, which i think, will cause the market to drop. The best method? Nobody knows... Only God know the future. Most likely, the FED is going to keep the rate unchanged. Until the damage is done, i.e., inflation starts to slow down and it is obviously that the trouble in the home loans stuff has spread around, then only the FED is going to reduce the interest rates. Anyway, i still maintain a short term "bye bye" in the Dow and S&P500 index.

How about Japan carry trade? It is over yet? How much damage could it done to KLSE? Again, nobody knows...

How about election? Is the election coming soon so that politics party will push up the price? Again, no body knows... Will PM push the market to 1350 as promised (even despite the global downturn in the stock market)? Again, nobody knows...

Signals are mixed, confusing and complicated. Somehow, ask yourself these questions... Is the Malaysia economy really good? Can the Iskandar project work (or become just another Cyberjaya or Putrajaya)? Why the stock market never move up despite good news on internet, newspapers and etc?

Trading is always like that... Signals are mixed and opposite opinions could even occur in a trader mind. The market has become so hard to anticipate and analyzed. Every people has their own opinion... Newspapers and spreading both good and bad news... Even the world reputable investment companies are telling different stories...

For now, the best is to sit back and hold your cash near to your ball. Some of the money are not meant for you to take (Do you see anyone keeping the "heaven money" that are intended to be burn for the dead people in their pocket?). Disregard all kind of opinions, any kind of advices, or any research reports by anyone. Focus on the fact... the fact that the market hasn't goes back to its previous high. It is only the fact, the price increase or decrease as well as the volume action, that are going to tell you what to do next...

Ultimately, only facts are real, opinions are just... opinions.