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What to do?

If this is the final pre-election rally, then we must be careful not to hold too much shares when the local funds pull the plugs or take their profit. If the previous election can be a guide, the profit-taking will come before the announcement of the dissolution of Parliament. With Hari Raya Aidilfitri likely to be celebrated on August 19-20, National Day celebrated on August 31 & Malaysia Day on September 16, I think the dissolution of Parliament will only happen in late September. If that is the case, then the current rally could last for a few more weeks. On the other hand, if the Government planned to dissolve Parliament right after Hari Raya Aidilfitri, then the rally could end much earlier.

Based on the above analysis, you should reduce your exposure to the amrket or take profit steadily during the interim period of 1-3 weeks. Good luck!
Posted by Alex Lu at 7/18/2012 02:26:00 PM No comments: