As I read TheStar newspaper today, there is one article that I find quite interesting. However, I will write it from my point of view.

The subtitle begins with ‘it (the market) exists to serve and not to instruct’. In the beginning of 2008, analyst predicts that KL Composite Index (KLCI) will go beyond 1500 points, however, the market can be very crazy, and within 6 months, KLCI drops about 350 points. That is a very drastic drop.

2 investment gurus had their view of this market situation. George Soros attributed these phenomena as the ‘reflexive process’. The price change is due to a change in the company fundamental.

I prefer the way Warren Buffett interpret the current market situation. He holds to his principle that the market is manic-depressive. (As a pharmacist, there is certainly treatment for this manic-depressive disorder, such use using lithium). The market can be very crazy at times, and also be normal at certain times. So, when the market is very bad now, it provides us investor the opportunity to buy undervalued companies, especially blue chips companies. We have to calculate the intrinsic values, check out the company profiles, and much more.

In conclusion, do your studies well on the potential company and buy it when the price is right. Never ever time the market.