This week the stock market still performed poorly with no improvement in sight. The KLCI, benchmark index continue to drop by -31.39pts to 1,206.67. Political uncertainties continue to put pressure provoking foreigners to sell our market. Biggest market moving news this week was delivered by SAPP's party president Datuk Yong Teck Lee who expressed a motion of no confidence against PM Datuk Seri Abdullah Ahmad Badawi. To investors, it is always better to avoid uncertainties and stay out of the market (hence, the selling of stocks) than waiting for bad news to come out.
Of course, all cannot be blamed on the uncertainties of Malaysia's political scene. Global inflationary pressure is also part to be blame for the poor performance of global indicies. What the world is facing right now is "cost-push inflation". These kind of inflation are mainly caused by increasing basic material prices. Look at mineral, metal, agricultural commodities oil and fuel prices right now, they are now at "never-seen-before" prices.
Relatively speaking, if you and I didn't made as much money to cushion these price increases, don't you think you are a few Ringgit poorer. The most prevalent cost-push inflation to hit average Malaysian is the recent petrol hike from RM1.92 to RM2.70. We at YouInvest sure felt poorer. Ouch.....
YouInvest will be starting the [Unit Trust Investment] segment in July, remember to follow as we explore the wonders of unit trust investment and how it can help you overcome lowering value of RM (or inflation pressure) and potentially make money in the long term.
YouInvest - Malaysian Investment Made Easy
Posts
No comments:
Post a Comment