Unpredictable
weather patterns, global climate change, stock markets and oceans turning red
(yes, they are actually turning “blood like” red due to some sort of algae
growth in the oceans) and the increase in seismic activity makes it look like
doomsday is just around the corner.
The end of
the world (or the new beginning as the doped up optimists would put it) is
nonetheless going to cause some ripples in the capital markets around the
world. Global indices have been on the battle field since the end of last week,
leaving blood stains to taint the markets since early this week. Clearly, panic
has started setting in and maneuvering through this turmoil is indeed going to
turn out to be a feat. If it’s really coming to an end, there is really nothing
we could do besides sitting back and enjoying the fireworks. However, should we
survive; here are some pieces of information to make sound investment decisions
for the coming year.
Let us start
by looking at the local market. Malaysia, has been identified as one of the
best investment portfolios by the international community, especially since it
climbed the rungs from being the 12th largest IPO (initial public
offering) producer in 2011 to the 4th largest IPO producer in 2012
falling below giants such as the USA ($54.6Billion), China ($14.5Billion) and
Japan($11.1Billion) and outdoing the Asian financial capital, Hong Kong
($6.6Billion). Malaysia, despite the child-like political scene has been making
mature strides in terms of corporate and financial decisions. In 2012, Malaysia
has issued $6.8 Billion dollars worth of IPOs with Felda Global issuing $ 3.2 Billion, Khazanah controlled hospital operator IHH
Healthcare Berhad issuing $2 Billion and Astro Malaysia Holdings issuing $1.5
Billion, Malaysia has now been hoisted onto a whole new platform. As speculated
and reported by fellow analysts in Bloomberg and CNBC, Malaysia is actually set
to be the world’s IPO capital in 2013.
However, the
Malaysian electoral scene might force any investor to have major skepticism,
even on minor investments. But this political bickering and pointing of fingers
would have to come to an end in 2013. As the parliament will be dissolved by
the 28th of April, there is a 60 day window during which the
elections can be called for, leaving June 26th to be the last day to
call for elections. Should that fail, then we will be governed by the military
until elections are held. Well, let us not get carried away, shall we.
Elections will (hopefully) take place by the 26th of June 2013. And
it is the time leading to the elections that would actually work to benefit the
investors in Malaysia. With the release of new IPOs and political support for
businesses that are bound to happen in 2013, capital market investments will be
very lucrative for all.
But what
happens after the elections? Well, the market will be sluggish and might
actually have a downturn for a while for readjustment to occur. After which, it
will be up and running and things would start coming to light. But this might
be the point where the prices of properties drop as the scenes leading to the
elections would have inflated the prices of things a fair bit. Sadly, many
common folk would have been led to buy these properties at such high prices
that they would find it hard to service when money tends to lack in the system.
Hence, the investor who stored during the hype would now be able to go property
shopping as initial investors wouldn’t mind disposing these liabilities off
their hands.
So what am I
suggesting? Simple, let doomsday happen… Should we survive, we should then look
into the capital markets of Malaysia and see how we can make the best of this
market. I mean, the politicians aren’t the only ones who should be surfing this
wave. With proper investments, we too could get those diamond rings and
penthouses.
For those
who would like to visit the summary of the research that I had published in 2009
on the “end of the world” theory, you may do so by clicking: http://thewisse.blogspot.com/2011/12/2012-practical-joke-or-impending.html
Prepared By,
Ashveen Chakravarthy Sekaran
December 17th 2012
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