How I going to ride thru this KLSE bear market

The new RAT year has just begin on 7-Feb-08 and US share market look not so good with more negative news popping out one by one. To continue to be in the KLSE market, I already turn 1/3 of the my equity holding to good old cash. I fore see a downturn coming back on last year 2007 December, when I browse thru the newspaper, where most of the Mesdaq counter already drop to year low. Only left that not hit is the Blue Chip and index link counter.

Now with the Chinese New year celebration ending next week and election coming on the early month of March, the share KLSE sure will go in to correction a month or two or three. I think it is a right times to window shopping for undervalue stock.

With US economy in to slow mode and world economy following behind soon, hence Oil price had started coming down last week. On Wednesday CNBC reporting US gasoline price is coming down and survey showing more people believe in a downturn oil price because of increase inventory. OPEC not reducing oil output in short term, I really believe oil price will move down to US65 till US68 area in this one or two month.

To benefit from this oil price downtrend, best is jump into oils depended company such as Airline and plastic related company. I’m looking forward to Airasia and Titan for cheap entry. I’m at looking to at price of below RM1.55 for Airasia and below RM 1.40 for Titan chemical. In this coming quarter might not see any great figure but the real benefit will only pop up on the June quarter reporting on August 08.

With the cash I having, not only growth stock should be consider, I also looking into

dividend stock to ride thru this bear market. With 8 to 10 percent return base on dividend yield is better than FD on Malaysia Bank. There few counters that can out perform the FD and REIT in KLSE. Try Ccmdbio, Yilai and Uchitec, they provide 35sen , 12sen and 20sen dividend last year. This make out about 13% dividend yield base on Friday closing for CCMDBIO Rm 2.59, 12% didvend yield for Yilai RM1.04 and 9% dividend yield for Uchitec RM2.09.

So all the best to those who read this article, hopefully the world economy will go downturn as I expected. But we should expect the worse to happen and get prepare. Having Investing !!