Saturday, May 19, 2007

UT Portfolio as at 19 May 07

There are alot of speculation on the bubble bursting, especially after Li Ka-Shing's comments this week.

The market are made up of big time institutional investors (like Mr. Li) and many small time speculators (like myself). If you follow the market closely, you will realise that when these institutional investors ("big boys") take profits from the market, a rippling effect will form; small player follow suit in cashing out on their investment subsequently - causing short term corrections. However, with growing market efficiency, more influx of small players might just create a shift in control of market directions.

Currently in Asia, it was witnessed that most new investors happen to be small players who wanted a try their hands on the "hottest slot machine" - China / Hong Kong Stock Exchange. With the increase in market players, it is not surprising for the big boys to shock the market in a bid to scare away the weak-hearted punters. In my opinion, the big boys just want to show that they are still in control.

However, all this might change in a very near future. With information readily available and small players being more investment-educated, the investment table might turn. A stronghold the small players created together could easily manipulate the market in any way they wish. The effect would be even greater than any market movements witnessed before..... this will be the REAL BUBBLE.

Here's my scorecard for the week:

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