@DickyMe - You clearly think Maybank is not merely a lousy stock, but a lousy company, as well. You are entitled to that opinion. What baffles me, however, is you hanging around here, with the shareholders of this, well, lousy company. Why? Do you see yourself as a some kind of court jester, perhaps? I could only guess. That said, I confess I would be the happiest camper if Maybank (with its fundamentals intact) tanks to RM5.80, as you predict. Why would it do so, though? Kindly share your insights. Thanks.
“Are we going to have a recession? It’s pretty likely,” said Larry Harris, the Fred V. Keenan Chair in Finance at the University of Southern California Marshall School of Business and former chief economist of the SEC.
“It’s very hard to stop inflation without a recession.” There will be a day of reckoning, the question is how soon.
When the Dow dipped below 20,000 points and the KLCI below 1,200 points two years ago, Maybank held steady at above RM7. Since you have been predicting that Maybank would soon drop to RM5.80 multiple times over the past few months, the onus is on you to explain to us how you arrived at RM5.80, not demanding others to explain why it won't drop to RM5.80. Understand the logic?
TBH, I secretly wish it would go to rm5.80, then I would top up max to increase my shareholdings. to me its simple, even if drop, dividend still around rm0.5x. so DY will be very very good. so its a win win situation. I get to increase and top up my MBB stocks, ROI will rise. so yeah, hopefully a BI soon.
In recession times, there will be no demand for goods and services. so no sales, job, no work, no income. stock market will free fall as money is a hot commodity for daily expenses.
Inflation on the other hand is caused by more demand more than supply, (printing of more money due to these demand is a cause of inflation). to counter demand. liquidity in market needs to be reduced, hence OPR (overnight policy rate) increase will reduce banks ability to lend out more.
Recession is possible when money is worthless piece of paper like what happened to south america a few decades ago. First sign of trouble with economy is always the retail market. if you see shops closing down, manufacturers factories will soon follow, then the other industries will too. Banking will still be the safest as they would control cash and profitability - probably the last to fall unless you got fraud like Barclays, otherwise quite safe.
property market has an inversed relationship with the stock market. if stock market falls, property market goes up and vice versa as people wants to park their money 'somewhere' to earn returns. in our case, Malaysian property market there is demand. its just that people cannot get loan to buy the houses because of credit crunch as our government wants to control prices of property.
but then again, this topic is not suited here as it is MBB,
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....