THE CORRECTION

It is just a coincidence while I was watching a TV series called Person of Interest, mentioned the project name "the correction" will be on 6 May, which is today's date.  While the project name does not mean the correction of the stock markets, but it is a significant day because the bad guy was about to threaten the security of the entire United States, and become a hero eventually control the entrie government by blackmailing them of other similar attack will happen if they do not listen to them.

Well, it is just an interesting TV series and plot.  In the end the good people save the day.

So, before I could finish my sentence, the correctxxx, the NYSE rebounded.  it is like, one step forward and two steps back.  The NYSE and NASDAQ have been dancing cha cha for the past couple of months.  One day economic report is good, the next, it is not so good.

What is happening?  Is it a correction?  At today's zero interest rate, what do you think of NYSE index level?

IDES OF MARCH

Basically means, 15th of March, 44 BC, the day Julius Ceaser was assassinated, and a turning point for Roman, which turn Roman Republic into Roman Empire.  Similarly, while I was watching another TV series which talk about the dagger, stab number 23, that actually killed Julius.  However, a quick search from the website you will realise there are many versions of how Juius was assassinated.

It was another interesting story about about a believe that historical "dagger" has a curse and can kill an immortal.  The immortal of course, is trying at all cost to get hold of the dagger, which will end his immortality.

WHAT IS IT GOT TO DO WITH THE STOCK MARKETS?

So, is NYSE going through a correction?

Or, is there a major change of event for the NYSE?

Wait, will there be another coincidence? (to be continue......after dinner)

DON'T GO AWAY, WE WILL BE RIGHT BACK... with some investment philosophy?

THE CALLING

"You cannot build the future for our youth, but you can build our youth for the future" said doc (NCIS). It is about the Calling, another IS like terrorist group set up in murdering the innocents to fulfill their selfish agenda. The story in THE CALLING is about a terrorist group who is recruitting the kids all over the world to carry out their deadly mission, to creat chaos to the world, to send a message to the American.  

Well, if we put these three tv series together, we will have something like The Correction comes before the Ides of March that turns into The Calling of the century.  The stocks markets will go through a correction before a major transition of the real economy and the financial markets reconcile and send a chaotic message to the world.

Well, this is the results of too much TV series.  

SO WHAT NEXT?  FOLLOW THE THEMES?

While having a conversation with some smart and veteran investors, I came to learn that entrepreneurs have a good intuitive about biz (cannot put into formula or any measurements).  They have these special ability to sense certain industry trends before they are reflected in the financial markets.  One of which is the pharmaceutical industry, it appears, all three, CCM Duopharma, KPJ Healthcare and Pharmaniaga share prices went up quite strongly.  

Another observation is that trends of home furniture manufacturers seems to come back to life, after most Johor manufacturers of furniture was wipe out by the Chinese many years ago.  Furniture manufacturers like Latitude and Homeriz share prices went up in triple digits.

So, it is only rational for any curious investors will ask, which industry next.  Could it be our long forgotten semi conductors manufacturers like Unisem or MPI.  But they also has went up lately.  This industry is also cyclical.  These companies benefit from the recent appreciation of USD.

So, how come these entreprenuers has these six sense, while ordinary investors may not have it?  Well, we call it theme plays in the investment industry, if you get into the theme early, you will ride like a wind.  Just like those who are involved in small cap stocks in 2013, it goes up quite a lot.  Those who follow the oil and gas theme also doing very well, if they got out on time, I remembered Coastal went up from around RM2 to about RM5 and today is about RM3.  Not to mentioned many other oil and gas companies like Sapura Kencana oil and gas related companies went up strongly until last year June, when Brent Oil price drop about 60%.

So, in order to be good at theme play, you must get in (the right industry) at the right time and also get out at the right time.  Here we go again, TIMING IN and TIMING OUT which is not within your control.  

ANY OTHER WAYS TO BEAT THE THEME PLAY?

Getting the right industry, going in at the right time and getting out at the right time, sounds like getting lottery three weeks in a row.  What is the probablity?  BUT nothing can VALUE INVESTING, it mitigates the TIMING ISSUES, or SELECTING the RIGHT INDUSTRY ISSUE and also TIMING WHEN THE THEME PLAY ENDS. 

So you have any good one in mind? Well, I like DIGI, Gamuda, Public Bank, Genting Plantations, however, I will accumulate them over time.  These may be good stocks, it depends what price you pay for it.  Well, at least I have a shopping list in hand, what about you? Of course, there are many more I like.