I believe the curiosity is not why buy Public Mutual China Select Fund but why March 2, 2009 after DOW went under 7,000. I don't have perfect answers.
The room for stock to decline 50% when DOW at 12,000 or 13,000 is very high. But the probability of DOW to decline 50% at 7,000 is somewhat smaller.
Just a small stake to test out timing, I will not put in another dime until this $1,000 shows some promise not to lose more than 15%(excluding loading fees of 5.5%). Shanghai Composite Index closed 2,093 today. The recent Shanghai Composite Index high(before correction) was 2,403, if it decline by 20% - below 1,920 - it will tell me this is a false bull start, then I will not put in more money.
2,100 is the approximate target zone that I planned to put in some money.
In case I am wrong on the timing, I still have cash left to buy more if I am convince quality stocks are getting cheaper and long-term fundamentals are not impaired.
KLCI : 868
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