SOS KLSE

11 brokers' forecast on KLSE for 2011 (average)

1703

For reference only, some of the brokers are, MBB, UOB Kay Hian, HDBS, ML, UBS, Alliances, Affin, CIMB, ECM Libra, etc Lowest was 1560 and highest is 1900.

Chartist SN Lock is bullish as well.

MyView

This year have 100% concensus, a BULL, period. Can all of them be right? Even Barron's expert, 100% is bullish about NYSE. Well, it is fruitless to debate their forecasts, but I am more concern of the aftermath. Will a 2008 repeat or can it sustain? Will be like, peak (for a short time) and then follow by a CRASH, like oil price in 2008. So it appears 2011 is HAPPY for all brokers or share market participants all over the world. Then again, can it?

Let us look at the shipping market for a moment, it peak and then tumble down, Bultic Dry Index BDI went up to 11,000 during its peak few years back and today is about 1600. Do we think it will goes back to 11,000 after it reaches its bottom at around 800 points. Let us look further, what happen to the ship owners who bought during the peak? And not able to get the high charter as expected? How long can it nurse itself back to financial health? Most would fail. Now, of course it does not represent the entire world economy, but does have an indirect indication of the health of the "real market" on transportation.

What about the over gearing in developed countries, can it be resolve just by printing money? If there is no adverse financial implications, whenever a country goes into recession, just print, problem solved, period. Surely there are consequences. What about Derivatives, one of the most unregulated industry, and the largest, i.e 10 times the world GDP?

The issue here is HOW to then protect your hard earned money?