China stocks collapse! Greece potential default! Malaysian Prime Minister Najip and 1MDB trouble!
Suddenly panicky news in the world seem to splash the stock market in red.
STI broke 3300 to reach a low of 3250. KLCI broke 1700 to reach a low of 1685. Hang Seng suffered its biggest one day percentage drop ever since the financial collapse in Oct 2008. Shanghai Composite seems to be a "gone case" dropping 30% from its peak of 5178. Or so is the belief of some stock analysts in the world.
I would disagree.
In fact, I am bullish about Shanghai Composite now!
In March, I am perhaps the odd one out to mention about the shanghai collapse in JUNE 2015, when it is flying. Yes, when I mentioned June 2015, a lot did not believe.
Click on the article below titled written on 17th March:
<<China Shanghai Composite continue to hit new bull market high! But be warned of a collapse near June!>>
At that time, I even commented on air on radio station about the danger of SHComp collapse in June 2015.
Below is the youtube link of the radio interview with FM958 ----
In the recorded interview, starting from 3:45min, I mentioned 3 points one should take note to invest in China Shares after June.
But now, the important thing is what should we do? My opinion is since everything has been so oversold, it is time to take out our weapons and buy cheap!
STI buying zone is from 3250-3300. (inside buying zone now)
KLCI buying zone is from 1650-1700. (inside buying zone now)
Shanghai buying zone is from below 3500. (reached buying zone on 8th July)
Hang Seng buying zone is below 24000 (reached buying zone on 8th July)
Dow Jones buying zone is below 17700. (inside buying zone now)
DAX buying zone is below 10600. (100 points from buying zone now)
Although a lot of the investors are still waiting for the Greece episode, I am willing to take the dive to start buying now to test the market. The default that a lot of investors are waiting for might not happen after all.
Even if there is, Greece impact and influence on Euro banks won't be significant. Euro Banks has already sold almost all their Greece assets these few years. In fact, if Greece indeed defaults, this is one great opportunity not to be missed to really buy stocks at a 50% discount.
We are now indeed in the midst of the GREAT SINGAPORE SALE!!! GREAT MALAYSIA SALE too!!!