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Showing posts from November, 2012

10 yrs Cycle and the KLCI

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In response to a reader's question whether this cycle theory applicable to the KLCI. Below are the charts for the analysis: 1. 1980 - 1989 In the 80's we can see from the chart above, the KLCI was choppy with a horizontal trend with price index ranging from 200 to 500. It didn't follow the 10 year cycle theory whereby the first few years should be low, and there should be a run-up in the middle of the decade, finally reaching a peak at the later years and follow by a crash. However, in 1987 there was a crash of about 50% from its peak. 2. 1990 - 1999 In the 90's we can see clearly that the KLCI followed the theory whereby there was a nice run-up till 1997 and followed by a severe down turn with price index dropped 80% from its peak. 3. 2000 - 2009 Again during the millennium decade, there was a consolidation in the first few years, then price index had a steep rise from 2006 on wards and reaching the peak in 2008. This round, the KLCI dropped 42% from its peak. From the

The Benefits of Utilizing Twitter for your Business

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Every business out there is looking for the one thing that is going to give them the edge over the competition. Most businesses believe it is all in the products and services being offered. However, in reality, the marketing plan of the business is one aspect that has a huge effect on the number of consumers the business sees throughout the years. With this being stated, the business who wants to take their marketing campaign to the next notch will find using Twitter has several benefits for the business. Opening up Communication When most businesses find employees or customers are not happy this is due to the business not communicating effectively with these people. Twitter changes all of this for the better. Those who use Twitter can voice concerns about the business, whether this be concerning the product that is offered or the work environment. The business can read the tweets and form a plan to get these problems taken care of. The key to getting the varied communication line is t

Jefferies: Comfortable in its Niche

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In finance circles, Jefferies , the mid-sized, New York-based investment bank, is a "tweener"--too big and mature to be a young upstart, but not  large or imposing enough to earn the label "bulge bracket" or "too big too fail." Like a Knight Capital or MF Global, if Jefferies were in danger of sliding into oblivion, government regulators and market counterparties would let it go. Amidst all the post-election squabble about "fiscal cliffs" and recent stomach-churning market volatility, Jefferies quietly slipped into the business news this month. It agreed to be acquired by its minority owner, the conglomerate holding company Leucadia .  The transaction won't shake the broker/dealer world. It may hardly move anybody in any way. But it brings to mind the consistent, stable performance of a niche investment bank, one that has always been too small to be a threat of any kind to behemoths Morgan Stanley, Goldman Sachs and JPMorgan. Yet it is one

Cycle Analysis and The Stock Market

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When we talk about cycle analysis we will definitely think of WD Gann, the legendary stock and commodity trader who had made tons of money from the financial markets. It was estimated that in his lifetime he made $50 million from stocks and commodities. Imagine how much is $50 million 80 years ago translated to today's money. What was his secret? He had the ability to forecast the market by studying the historical prices. He said, "Everything works according to past cycles, and that history repeats itself in the lives of men, nations and the stock market." (more quotes from him) In 1928 the year before the crash he successfully predicted the crash in 1929 and said that it would take years for the stock market to recover. You may read his detail prediction  here. Today I want to talk about one of his famous theory on the cycle analysis, its known as the Decennial Cycle or the 10 year cycle. According to Gann, he compiled the past 100 years of price data and put them on a c

UBS Throws in the IB Flag

UBS , the Zurich-based global financial institution, announced last week that it plans to dismiss 10,000 employees as it continues, like most big banks, to review, revamp and re-scale its business units around the world.  That's not an unusual news item. In financial services, that's a news blurb we see almost every other day. UBS provided more details.  Most of the dismissals will come in its investment-banking group.  More specifically, its fixed-income businesses will suffer the most.  The dismissals, the down-scaling and shrinkage are unfortunate. The announcements are, nonetheless, not shocking, since they are a common event in the business press. This might, however, be the first wave of dismissals in finance, where the bank stepped up to admit  blame solely on its inability to justify business lines because of hefty capital requirements from the new wave of regulation. UBS says new regulation (in Switzerland and from the reforms of Basel II, II.5, and III, and new Dodd-F