It had been quite sometimes I did not update my blog due to heavy load on my work and personal investment. Stock market, Bursa Malaysia, reached its all times high as above 1600. Hartalega, Public Bank and Allianz close to their all time high as well. Although I see no bubble on these counter, but I also realized that the whole stock market actually supported by "feel good" environment created by our Government. It is so unhealthy that the whole index is supported by these GLC or GLIC, further affected by the listing of heavy weight GLCs. My take is this situation would be "disappear" immediate after the election, it is better to reduce exposure and get ready for next wave of volatility.
Secondly, in my more than 10 years investing experience, I never seen investors priced the so called "dividend yield counters", consumer counters, defensive counters, telco or cellco so....so..... aggresive. It is hard to believe that general investors can accept dividend yield of 3-5%, and further more PE is more that 20. Look at PPB, BAT, F&N, Nestle, Carlsberg, GAB, TM, Digi, Axiata, Pavillion Reit, CMMT Reit......blah blah blah. Is it because of low interest rate? I dont think so, we had been in this low interest time since 2008. Instead joining the party, it is always better to leave the party early and get prepared for the aftermath. Stock market is a place where only minority can survive in long run. To be fearful when other is greedy.
I also opine that this is the correct time to offload the 2nd, 3rd grade or penny stocks. If as today these stocks still below your purchased prices or under perform the stock market as a whole, forget about it. They will not perform neither better in near future, under this environment it still not going up, there are slim changes it going to go up in future.