Investment Note - Apr 2013

Dear Investor,

Greeting! It's first week of April 2013! Almost all the world stock markets are near their high level. US Dow Index already above 14,000 points for few weeks. The recent update came from Hong Kong, where we saw Hang Seng Index fall by about 600 points last Friday, thanks for the new Bird Flu! Anyway, this is good opportunity to play around. (for local stock, glove stocks sure will become hot now, for HK, I will explain below)

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Cheap money to support the Market rally this year

Finally, for Malaysian, the long awaiting event, General Election going to happen! Many think that Bursa's Index will go down after the announcement. As usual, I always advise investors, don't predict the market, instead respect the trend and use it to our advantage. Currently, Malaysia market is extremely strong, investors can ride on "current moving stocks", especially Glove makers (usually Bird Flu happen people will buy these type of shares) and Iskandar play related to properties stocks.

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One should know that in the Market, there are stocks which you can keep for long term. There are some suitable for short term trading and some penny stocks (or I call it problematic stocks) which people like to speculate. There's nothing wrong to play with penny stock, but just be extra careful, jump out of the boat if it start leaking water, a sign of going to sink!

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Biggest listed company in Malaysia

Maybank is one of stock I like for long term. It never fail me (Last year, I recommend this in my blog when it was RM8.5x and now it's near my target RM10.10 this year). (you may read it here, from my blog). Now, I don't suggest to buy it at current price, but can keep it in your buying list for next round when market crash.

For Maybank, as long as a valuation for a stock is not overly stretched and the company's dividend raised year after year, it will likely to attract investor. Don't forget, beside EPF, now we also have PRS (private retirement scheme), which they have ample of funds need to invest. Next time, when market go down, if you want to invest in Malaysia's biggest listed company and enjoy good dividend, remember to include Maybank as your long term investment portfolio.

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CIMBC25 strategy - don't cut loss but cut profit when market up

If Maybank is for long term buy, is there any others stock to trade for short term? Yes, take advantage of current HK down trend, I suggest to accumulate CIMBC25 (it's an ETF that buy 25 Blue Chips in HK/CN) Last week, it close at 86 cents, investors can start slowly collect it. (remember, slowly, don't collect it one time) Don't fear if the price go down further. For this stock, you can average down even the price keep falling in next few weeks. When Hong Kong market rebound, 10% of return is not a problem. (Click here to see my buy & sell record)

That's all for this time, wish you doing well in investment trading. I do welcome if you have any question related to CIMBC25 or Maybank.