At the beginning of this year, I was not sure how much exposure I should have in property stocks.

Some of my friends were of the view that we are closed to the end of a boom cycle, and property stocks would underperform going forward.

However, by chance, I read from a Technical Analysis Expert, in one of i3 discussions that the KLCI Property Index was very bullish.

Because of that, since February / March of this year, I have the confidence and comfort to incease exposure in property stocks.

Recently, the property analyst from Affin Investment Bank published a gloomy report on property sector.  Few days later, the analyst from RHB Investment Bank published a report with totally opposite view. Both reports were widely read in i3.

I decided to brush aside Affin's report and warmly embrace RHB, because I have seen the KLCI Property Index movement with my own eyes (the chart below)

As can be seen from the chart, the KLCI Property Index bottomed in early February 2014, and had been on an upward trend since then.

The exact reason for that is unknown.  One of the possible explanation is that smart money are taking position in anticipation of picking up of buying activities in the property market by second half of 2014, ahead of introduction of GST.

In general, I am bullish about property stocks.

YOU DON'T NEED TO BELIEVE WHAT I SAID. YOU SHOULD TRUST YOUR OWN EYES. THE CHART CANNOT LIE.   

Coincidentally, AmResearch released a report this morning with similar bullish view on property sector.

http://klse.i3investor.com/blogs/amresearch/49583.jsp