Year 2012 was a fruitful ride on the bull run.
Year 2013 the equity market WILL NOT come to a crash but
another FRUITFUL YEAR to ride on the BULL RUN!
Year 2012 was a choppy ride as the worries on the European Debt Crisis, the slowing of growth in the US and China had caused the retail investors to stay put at the side lines throughout most of the period. But the equities market in Year 2012 had ended mostly at positive gains as the major indices around the world had seen moving to higher grounds in their recent rallies.
Year 2013 will be another exciting year as we can see the policy easing trend is likely to continue with more central banks putting forth easing measures to excite the economy, especially China and Japan. However we will still see the volatility in the stock market this year as the global economy has yet to recover and the rising performance from the stock markets are mainly driven by the excess money in the market.
Trend Followers have been riding on a fruitful year in 2012 with most of the major indices are on trend throughout the year. We will be expecting the uptrend to continue this year as long as the market did not violate any of our major trend decision in the long run.
In Malaysia, our FBMKLCI index had rallied to another historical all time high of 1700 points at the recent rallies. Year 2012 was a year for keeping defensive stocks, small caps stocks and trading penny stocks which we had seen their rallies. Year 2013 will be a more exciting year as we will be seeing most of the blue chip stocks to perform especially the ‘new members’ of the blue chip stocks. Small Caps stocks and Oil & Gas Stocks will be in our watchlist too. General Election will definitely affect the Malaysia Equity Market but that alone will not be enough to bring our market to a crash.
Trend Followers this year will be riding on another exciting bull run. Stocks that are all forming a healthy uptrend will always be in our watchlist and stocks that are in downtrend will not be in our watchlist but to keep and observe. With the continuation of the global market worries, there will definitely be volatility in the stock market. What matters most is what category of stocks are we holding in our portfolio and knowing when we should get out of the market when rules are violated according to our trend following.
Happy Trend Following! Cheers!