Showing posts from June, 2015

Global and Malaysian Stock Market Outlook By Mr Ooi Kok Hwa

I attended an interesting talk today on the Global and Malaysian Stock Market Outlook by Mr Ooi Kok Hwa. He is the Managing Partner of MRR Consult, which deals in Business Appraisals, Investments & Financial Training. He is also a Chartered Financial Analyst (CFA) and Licensed Investment Advisor.

Mr Ooi, who used to have a column in The Star, was one of the keynote speakers at the InvestFair seminar held at the MidValley Exhibition Centre this weekend.

Mr Ooi gave convincing reasons for his outlook, based on in-depth data and the conclusions he made were very interesting. For the global economy, the following points were put forward:
Economic growth is well underway in the US and EuropeRisk of inflation is rising.US will need to raise interest rates soon.Bond markets are already affected due to this expectation.China's economic growth is moderating.The authorities will let their currency to float lower due to slower growth.China stock markets are too high and will consolidate.…

Robert Shiller's Irrational Exuberance Returns, Just in Time

When Robert Shiller, a Nobel Laureate and Professor of Economics at Yale University, first wrote and published Irrational Exuberance in 2000, he warned about the dot com bubble. The bubble burst one year later.

In the second edition in 2005, he warned that a housing bubble was forming and a bust duly occurred in 2008 causing a deep recession in America.

Now. for the third edition in 2015, he added a section on the bond market, and right on cue, we are currently seeing turmoil in the bond markets. He also touches on the high valuations of the US stock market but he says he has no idea when a correction would occur.

The book explains forces that move all markets up and down. It shows how investor euphoria can drive asset prices up to dizzying and unsustainable heights, and how, at other times, investor discouragement can push prices down to very low levels.

Applying his wisdom and looking at the current situation in equity markets, the Chinese markets appear to fit his description of ir…