Winter is coming, at least for Malaysia Equities markets. Anticipation of strong dollar next year when US Fed raise rate, and strong economy boom due to fallen crude oil prices, accelerated the outflow of international capital from emerging market (especially Malaysia) to US. Falling crude oil price (when Oil & Gas activities account for 20% of Malaysia GDP) and palm oil price further drag the KLCI down. In the first week of December, the KLCI had lost another 3%-5%.
When winter is coming, investors have only two choices, either selling all stakes at loss to hoard cash, and wait until the spring return before returning to market, or do nothing. The later option is actually depending on how confidence you are with the underlying stocks you currently holding.
Current Return and performance
The estimated holding period return for KLCI in the past period (1st November 2014 - 30th November 2014) is -1.59% (with dividend included). Holding Period return for my portfolio, is -2.88%. Total holding period return for my portfolio since the inception is 16.52%, annualized to be 7.03%, this lagged behind KLCI total return of 19.32% (annualized, 8.16%)
The performance for my portfolio could end worse viewing current trend in KLCI.
