May 2019 is the most volatile month so far this year. Kuala Lumpur Composite Index (KLCI) closed below 1600 a few times in the month. Luckily, it recovered nearing the end of May (1650.76) and closed higher than the end of April (1642.29).
A surprise reversal
Honestly, I did not expect the market to recover so soon. I thought it would need at least three months for the stock market to recover. I think this shows the resiliency of Malaysian market. Luckily, I did not sell any of my holdings. Nonetheless, a large portion of my portfolio still did not return to the pre-crash level.
Trade war
The US and China trade war has escalated in the past month too. I cannot foresee how it will affect the market. I believe that the trade war generally means bad business for everyone but maybe somehow, someone can profit from this adverse event. What I can do now is to closely monitor the market first. Sometimes, inaction can be the best course of action.
Conclusion
Warren Buffett says: “Be fearful when others are greedy and greedy when others are fearful.” But seriously, how many of us can act in this contrarian way?
So, if you have been buying some good stocks during the crash (I congratulate you because it is a very hard thing to do), I believe you have made a nice profit in a short amount of time. I have always believed that the Malaysian market has some bargains during normal time and there will be a lot more during a crash. If we are able to find these bargains, our investment journey would be a fruitful one.
Will there be another crash in the future? I think so. But when will that happen? I do not know as no one can predict the future. So, I will stick with my investing strategy and keep some spare money for the unexpected opportunities.
