Hey Hey We're In Trouble ..

 

This morning the Mrs and I went to the supermarket. I saw this:

 

Chicken was limited to three 'birds' per family. So I asked the chicken boy and he just replied 'bekalan tak cukup'. An obvious reply but he is a chicken boy. I did not expect any economic analysis from him. But this is not a good sign. Plus this particular supermarket is owned by the largest chicken farm in Thailand and possibly in Malaysia as well. 

Here is today's Bursa Market Outlook by one stockbroker: 

Bursa market outlook: *Shooting-star pattern spotted*

• local benchmark FBMKLCI inched lower by 0.84pts or 0.05% to end the day at 1,587.07.  
• Top laggards were healthcare (-1.26%), technology (-1.26%) and telecommunications (-0.99%). 
• Trading volume fell to 2.92bn (down from 3.09bn previously) 
• Trading value reduce to RM2.92bn (down from RM2.93bn previously). 
• 470 gainers lost out to 605 decliners.
• The benchmark formed a shooting-star pattern yesterday as the bulls were unable to sustain its intraday gains. 
• The odds still favour a tad more consolidation ahead. 
• IF the index consolidates further then it should find support at the 1,557-1,569 levels. 

Gainers: 470
Losers: 605
Unchanged: 465

OSTB: Pay attention to the words in yellow highlight: consolidate (it means prices going down), unable to sustain, gainers lost out, value reduced, volume fell, top laggards, inched lower.

Not exactly the best of performances. Perhaps another 'limited to three 'birds' type situation? 

But here is a real shocker. This is a Comparison of Stock Market Performance from Bloomberg for the past 10-years and published by a local equity fund manager. You can click on the image for a better view.

Look at the yellow highlight for Malaysia. 
For the past TEN years the KLCI has actually contracted by minus 12.2% !! 
For the past FIVE years the KLCI has contracted by minus 5.6% !!
The past ONE year the KLCI has contracted by minus 6.9%. 

Folks we are in trouble. 

 

We are the only country in this chart (other than China) which suffers such a contraction in the Stock Market Performance. 

I also tend to doubt Bloomberg's reporting on China. China's Nominal GDP is US$19 TRILLION while their GDP by PPP is closer to US$40 TRILLION. So lets not worry too much about the Chinese economy. They are in excellent condition.

The Chinese GDP by PPP at US$40 TRILLION is way, way ahead of the US's GDP by PPP at US$29 TRILLION. China is the world's largest economy.  

But keep this in mind folks, according to Bloomberg above, our Stock Market performance has contracted by minus 12.2 % over the past TEN YEARS.  For comparison the Vietnamese Stock Market has grown 132% over the past TEN YEARS. 

Folks, we're in trouble.

And here is the Double Trouble - these fellows just dont have a clue. They do not have a clue at all.  

 

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.