Theory of Science - GRAVITY

What goes up must come down. I remember someone quoted this to me when price of crude oil skyrocketted many many years back.. and indeed it came down.. and went up again and now it is going downslope... Same goes with price of Gold. I remembered the days where gold was traded in Goldsmith at RM38/gram. Again, it came down...

Theory of Economy - INFLATION

What you must today, you pay more tomorrow. So we recall days where our parents said "one bowl of noodle is like RM0.05".. and today "one bowl of noodle is RM5". So, "face value" appreciates.. so does share price. It is just an effect, that we earn more (in face value terms).. and we pay more and we lift prices.. it is inflation.  

Where are we heading to? 

1. Commodity prices are falling - almost everything.. 

2. Earnings are disappointing.. 

3. Consumers are not so rich - and will be poorer - GST is kicking in. I do not know others.. but many bizman should know.. we pass GST to consumer.. 

4. Our Malaysians' house-hold debts are reaching ceiling.. 

5. Many Margin Calls have been triggered.. another round of call.. another round of sell-down.. and more sell-down... 

6. Financing been very tough.. 

7. Everyone is talking about how easy to make money in share trading few months back.. Greedy People Everywhere. 

8. Sentiments are poor 

9. Confidence is generally dropping 

10. It is holiday period soon - we have Christmas, New Year and Chinese New Year coming ahead.. 

Many stocks seem to value at attract PE... now u can find stocks with PE at 5-8... INARI at PE 12... but, PE is a tricky thing. 

High PE can suggest company is overvalued or possibly a company has good potential of large earning growth...

Low PE can suggest company is undervalued or likely is investors are losing confidence, foreseeing biz going to suffer... 

So GUYS.. which direction u believe we are going towards? 

GRAVITY wins or INFLATION wins?  

Layman's sensation now is GRAVITY force is great....  Cyclically.. is coming soon? looks like BCCA sounds convincing? Bo Chow CCC AAAA.. haha. 

WHAT IS YOUR VIEW GUYS...?  

Best Wishes

Calow 

P/S: Well.. always remember - life is NOT just stock market..