SOS KLCI

Maybank

Standard&Poor

CLSA

All three research house is bullish on KLCI for 2011.

Of course they cater for institutional fund managers, not retailer, hence their selection is on big cap stocks.

Some of their picks are:

Sime Darby

Maybank

IJM

KL Kepong

Kossan

While technical says, the next retracement is 1260, 1350, 1440 and the next resistance is 1630, 1720, 1810

In short fundamental analysts and technical analyst point to a positive KLCI next year.

However, Marc Faber points out that it is better to put your cash in stocks than keeping it with the banks, using the Mexico stock example. He believes that the world economy can goes into inflationary depression instead of just deflation.

MyView

USA most likely will end up like Japan with a major twist, i.e., inflation pressure on certain "consumables" such as food, transport, etc. Whichever way it turns out, market will be very volatile, arising from QE, implosion of debt, and sustainable growth.