Sunday, April 08, 2007

Watch out for outflow of foreign funds

My friend told me that the recent increase in the stockmarket is due to "manipulation" by the foreign funds. They are able to control the market.

I recall that, on three occasions in past years, the market fell a lot when the foreign funds move out (which they did, after they have made enough profit). When the market falls, you will not be able to get any buyer, unless you are prepared to take a big cut in prices.

If you wish to take profits, the best time is when the stockmarket is still moving up. Do not wait for it to turn.

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