The above chart shows the KLCI has been dropping rapidly in the last few weeks largely due to the bad publicity created by the 1MDB problem. Foreign investors are selling to take their money out of the country. As a result, most investors are worried because most the prices of their holdings are falling.

If you have bought your share which complied with my share selection golden rule, that is, the company can make more money in the current year than last year and the price is selling below P/E 10, you just have to wait patiently. You should not be unduly worried.   

As you know, most of the shares of exporting companies like VS and Lii Hen have fallen about 25-30% in the last 3 months due to the strengthening of our Ringgit. Currently our Ringgit is weakening again because foreign funds are pulling out.

Moreover, the severe price drop has also created some forced selling. 

Investors always overreact to good or bad news. In this case, the prices have fallen too much too rapidly.

As no one can predict the future of our market and our Ringgit, we must always buy or sell based on actual facts. Serious investors must take advantage of this situation to buy more shares basing on my golden rule at cheaper prices.

I am obliged to tell you that I have sold a large amount of my VS shares and now I am buying back.