In the meantime, it’s coming clearer and clearer to me that the ramp up in the KLSE was caused in a great part by foreign money coming in. After China, India, Singapore, Taiwan and Vietnam, hedge funds came in in a big way to Malaysia as an afterthought. So given the recent problems affecting the credit market, the question I have is whether there is enough local liquidity to sustain the market. My manager and I had a debate the other day where he thought that there was a lot of local liquidity but I wasn’t so sure. After all, how many rich people do we know who actually keeps their money onshore nowadays? And of those, how many will be willing to keep buying shares? Private bankers would be able to provide useful information here. If you know of any, maybe you can ask them and let us know.
Until I am back. Happy trading!
No comments yet.