My Daoist friend and I were having a chat over the phone about a stock I had been accumulating over the past few days, when his wife who overheard the conversation asked what business the particular company was in.
‘Tell her, the company's business is “looks to Heaven”,’ I had said with a chuckle. Actually the company has a small information technology business. However, it has been waiting for government approval of several big projects for the past couple of years, the reason for the quip. Furthermore, I explained, the Yi has given Kun / The Receptive Earth as the prognostication for the investment, therefore the adage, ‘looks to Heaven’ is appropriate. Kun looks to Qian / The Creative Heaven for leads!
After the recent bouts of falls in the Asian stock markets over the past couple of months, inexperienced fund managers in China are getting the jitters and worried about their investments. Who would not? As indicated in the previous entry on stocks, it is easy to make money in a Bull Run but when markets start to plunge, not many know how to preserve capital - by taking profits or cutting losses – instead of freezing up until it is too late to do anything. (Think of US banks and mortgage financiers’ recent attempts to raise fresh capital in the region of billions of dollars. And the ‘early birds get the worms’.)
When we read of comments from captains of industry and industries experts that ‘they had not seen it before’ of their country’s mortgage meltdown and the credit crunch, it means that things are in dire straits in the US. It reminded me of my own ‘I have not seen it before’ remark during the Asian Financial Crisis in 1997 even after the Yi gave me three forewarnings using Hexagram 29 Kan / The Abysmal (Abyss upon abyss, or bottomless pits).
Retail investors who are holding stocks in the KLSE with heavy paper losses (say 30 to 50% or more) may not know what to do now. (Sometimes it is worthwhile to listen carefully to what I blogged, it could have saved you a lot of money and anguish if you have listened.) The analysts who had been bullish in September and October are turning bearish on the stock market with a majority recommending sells or caution. Perhaps the ‘trapped’ investors should ‘look to Heaven’, or literally ask the ShenXian, for help.
It had been almost eight months since I last consulted the Yi on stock investments. In this bearish market conditions and amidst dwindling trades, the Zhouyi gave me the go ahead to buy my selected stocks. It does not mean that things are really on the mend, but there is a ray of hope for retail investors in the KLSE next year, if the Yi prognostications turn out to be correct.
While the South Korean Stock Exchange has stopped its free fall, according to my annual Yi chart early January 2008 looks exceptionally horrible.
That is why I am only using the money held with the stockbrokers since September to accumulate the shares for now, in case Malaysian investors want to know my current strategy. The rest, ‘the main army’, sits in the banks waiting for a major call up to join the war.
So far so good for me, lucky, I guess.