Buy now, i mean now ! 30th Oct 08 - Long Index, Buy Oil, Gold & Crude Palm

After analysing the equities markets around the world, especially Dow Jones, Nikkei, Hang Seng, KLCI, STi, Shanghai SE. I believe we are at the edge of entire collapse or staging for a rebound or short term rally.

Most likely FED is going to cut another 25 to 50 basis points follow by a few central banks in the world. This will somehow boost the markets especially when dealers commented that the over night Dow Jones 800 pts rally is not because of heavy buying, but just sellers are gone or over done till nothing to sell.

Long index for a 3 months objective to achieve a 10% contract gain, look for Oil to retest USD 75 - 80 per barrel, Gold above 800 - 825 and Crude Palm Oil recope losses to 1,600 - 1,800 level.

However, commodities are at short term as if things recover or when FED cut rate till 0.75 or 1 percent, that will be a long term stagnent price range for commodities. As dollar will only face upwards in long term when the only direction for the FED rate is upwards.

For equities, advised to further accumulate ROE with 20% after factored in with lowered profits and dividend yield more then 8%. In KLSE, Hap Seng is a top bet now at RM 1.6 - 1.7 level per share. Anything below is a super bargain.

Buying financial stocks in US like GS, AIG, MS are emerging to be good buy. I think, GS at USD 80 - 90 is a better buy. Cause you entered into a price better then Buffett. He bot at 125 with 10% yield promised by GS.

Local front again, recent listed SUNZEN on animal health with focus in organic feeding is super buy with ROE more then 20% at RM 0.21 cens and potential to trade with a PE of 14-16 is likely in 2009. This will be another TMCLFE soon but those who hold on to TMCLFE if you did not unload at 1.50 and above level, now is advise to take on its rights and bonus issues.

YTL Corp acquisition into Singapore REITs also a sign of more bargain in the market.

However, always look for a good governance counter. Distressed with ability to come back in any term, short, mid or long.

The only risk will be Korea KOSPI and if KOSPI is able to house the crisis in next a month or two with no additional selling with big news, i forecast this will be the bottom where Dow Jones 8,000 is a very persisted support, KLCI at 800, Nikkei at 7,000 and Hang Seng at 11,000 level.

Sentiment turns hungry. Buy!