Now is a smart time to buy stocks....Historically, on average there have been two particularly auspicious times to buy stock each year. Right now is one of those times.
We are very bullish on shares, and for the following reasons:
We do not believe that the economy will experience a double-dip in the remainder of 2010.
A typical bull market does not end after just one year, but averages between 2-3 years, depending upon the measurement techni
que used. It would be unlikely for the bull market to end now after just a one-year advance, especially after the severe and lengthy onslaught inflicted by the 2007-2008 bear, whose wrath has left many groups undervalued by historic measures.Many stocks are forming sideways price consolidation areas, known as bases. Subsequent to an intermediate-term correction or bear market, this has been our most reliable indicator of an impending intermediate-term advance for the past 20 years.
In fact, during this period, we have only encountered one other instance in which the market fell apart and moved to new lows despite the presence of many stocks building bases. Especially bullish is the fact that more stocks are forming bases at present than at any time since 1999, or before.
In particular, we like the fact the stocks are building, and breaking out of, sideways areas of consolidation, known as bases.
Maxis: 04/06/10 (RM5.24) Buy, target price RM5.90
Alam Maritim (RM1.65) Buy, target price RM2.40
Wah Seong: (RM2.08) Buy, target price RM3.40
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