Alpha Chart...The Return of 1993 SuperBull Run?

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Earlier, I mentioned about the CIMB research paper I read on the 20th anniversary of the last SuperBull in 1993 comes next year. In the report, CIMB cites the lack of the X factor in instilling a bullish sentiment i.e. confidence and attitude in the current market which I totally agree based on the 2012 market breadth.

For some readers, you may not have experienced the kind of craziness in "sensible" people chasing up stock prices at sky high levels while the "insane" people sitting out the game; I liken the situation to the latest Superbull in property market over the last 4 years! Perhaps this will give you a bit more feel of the market condition then. Even when you buy crap, market will still return you with great returns! The only mistake people make is when they don't invest!!

Fast forward to today, local stock market has maintained a tale of 2 halves...On one hand, some stocks did very well since the 2009 recovery; on the other, many lower liners are lingering lower as though zero (0) will be a fair value for these "junks".

2012 proved to be a lacklustre market for many where single digit return is well-accepted by investors. For me, it was a year of small profit; what a boring market!

Underneath the boringness, I still see a great opportunity for big profits if we were patient enough. I am still waiting for the right market sentiment to make a killing. In a market where liquidity is aflush, accommodative central bankers policy until 2015, cheapness of stocks, confidence riding high among consumers and wealth created from asset reflation...another bull market is about to be kickstarted.

Sentiment and attitude can easily be built in a market like this...you just gotta find a few syndicates to stir interest among some stocks, and you know how they will continue with the game. Many stocks are just too cheap to ignore.

If the market could survive the fiscal cliff scare, there's a good chance for a run...I may introduce another investment portfolio by then!! As it is, I'm starting to accumulate stocks again since last week... 

Be versatile and be ready to change your market view before a trend is established...The market was just full of doubt.

 

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