Stock investors are indeed strange fellows; they tend towards the herd mentality. When they see everyone else buying stocks and shares, they will rush in to buy some thinking they could lose out by not jumping onto the bandwagon. The urge is too great to ignore. Then when everyone else turn panicky and sell down stocks, they will follow suit in a rush to get out of the market. In bull runs they will make some money like most everyone else but often lose their shirts in bear markets.
Instead of following the ancient adage to ‘buy low, sell high’, they would buy at year highs hoping to sell higher. Actually, many low liner stocks in the KLSE had reached their year highs by spring 2007. Those who had bought these stocks then and still holding onto them would have lost a fortune by now. Were they the ones selling down the market recently in the mad rush to get out of the KLSE? Your guess is as good as mine.
From 2005 to date, except for the prior warnings by the Yi on a wanderer stealing my cow in 2007 and not to buy a particular stock even if one had great power both of which coincidentally occurred last August, I have not made any great mistakes in the stock market. Following the Yi prognostications and annual charts, one was lucky to avoid the deep plunges that occurred over the past few years.
However this year is something completely different. There are too many pitfalls for the unwary and the Yi has told me not to lead. In order to remain blameless, if I write anything on the KLSE, it will be on what I will be doing. If I go for a long holiday, after disposing of my stocks, please be careful. (Remember the entries on my 1993 experiences) Like in recent entries, I will still give some lead time for regular readers cum KLSE investors to buy or sell stocks.
Think of my March 2, 2008 entry where I blogged that half of my investments were sold down at a loss with more selling later. The KLSE was still okay the week before the March 8 elections. The KLSE meltdown took place on March 10. After the meltdown, I mentioned I would buyback some shares if they fall lower or have reached my target. Yet readers still complained about insufficient notice given or have asked when the KLSE shares prices will move back up.
Heaven’s secrets are often revealed in Daoist temples and a good place to change your luck for the better. If you want to become a ‘ShenXian’ to pass on readings to your friends and relatives on how KLSE stocks will perform in future, go to a Daoist temple and ask the real ShenXian. In their temple, the divine can give all the information you require. But take note that, at times, even their divine messages can be wrong.
Meanwhile, I have bought back some stocks. They have fallen by thirty percent from the price that I have sold a fortnight ago. When fundamental sound stocks fall a further thirty to fifty percent from their recent year lows because of unwarranted panic, it could be the right time to buy low.
What investors want to do is entirely up to them.
I reserve the right not to blog anything about the KLSE, if readers get too demanding.