Wednesday, September 1, 2010

It's the economy stupid

My entirely non-expert outlook on the apparent recovery from the worldwide economic crisis sparked off by the US sub-prime meltdown --which exposed deep systemic flaws in every market-- is that it is illusory. The KLCI has broken the 1400 barrier, but who is actually buying? As far as I can see, the volume is completely lackluster and everyone I have spoken with has little confidence to invest right now. If indeed the index is being buoyed on the purchase of blue chip counters --using our money in the EPF no less-- then the end of this rollercoaster may have a little surprise like in this cartoon here:





A helpful study and analysis can be read here.

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