In the past few months ago, my friend had introduced me a unit trust agent during dinner at a “Mamak” stall. He said that is unreasonable that KLCI still struggling within 800 – 900 points. From his point of view, KLCI should now reach more than 1400 points! He supports his statement by a reason that GDP of Malaysia is growing from year to year since 1996. Do you agree with his point? And how far is his statement correct?
For me, yup! There may be some points from his reason. But I don’t know for certain what is the reasonable level for KLCI. Anyway, we are not “blind”. The figures had said everything to us. In the past decade, of course there are some investors gain profits from there. But there are more people had burnt their money. From a statistics, on average, any $100 invested in a blue chip stock within this period will now left $77.61.
In this past 10 years’ period, there are many reasons apart from 1997/98 Asia Economic Crisis that caused KLCI not performed well. Nowadays, most of the world’s Main Stock Markets had shown us their potential of growing except KLCI seems still haven’t recovered from 1997/98 Asia Economic Crisis.
