I for one feel that this rebound in Asia is for real but am quite pleased to see all the fear and negative press. It was at least this bad when Mexico and Latin America bottomed a couple of years ago. The markets do climb a wall of worry.
Anyone in Malaysia have any insight into the consolidation efforts of the Malaysian financial companies. I bought the MBF ADR here in the US, MBFHY, at around 2 and it has jumped to $4. The Wall Street Journal, WSJ, had an article on Friday about the Malaysian government encouraging the financials to consolidate and that MBF Finance was one of the first to be bought up. Any ideas on a sale price?
I also have been in EWM, and EWS for that matter, from $4 to $5 and have noticed huge buying of these WEBS. It was like the word was given and the flood gates openned. The buy/sell ratio looks like at least 10/1, and these guys buy $500,000+ at a time. I wonder if these WEBS do not actually drive the local markets? (WEBS are like and open ended index fund of the countries stock market and are backed by actual shares.) The local markets almost seem to follow the WEBS performance not the other way around.
While my experience is not vast, I do know that it is probably better to be afraid of the markets when everyone else is confident.
Regards,
Derrick |
