3 Possible Election Outcome & Share Market Reaction

* Note: This is NOT a political post. Instead, we're talking about share market movement based on possible election outcome. Abusive comments are strictly prohibited and will be remove automatically.

Local investors have been staying sideline for months ago. Do you started to feel itchy now? Honestly, this is the feeling of mine as an investor, from being active to passive lately. I can't wait to start investing again in share market. However, we shouldn't simply jump in next Monday, right? Let's see the 3 possible election outcome and how market may react accordingly...

OUTCOME #1: BN retained power
Judging by the strong influx of foreign funds flooding local share market prior to election, this is definitely their expected outcome. If materialize, Monday market generally will rally. However, I expect this kind of rally will be short-lived, and turning downward after that. Why? Simply ask yourself these questions: When is the better time to take profit if not that time?


OUTCOME #2: Opposition Alliances won
Many people predicted that market will react negatively to this kind of election outcome. It's not strange. Anyway, once all the worries have settled down, new cabinet was formed, share market will recover. So, an U-shaped rebound is my bet.

OUTCOME #3: Almost 50/50 for Both
This is the worst outcome for share market. A hung parliament does not bode well for the nation. In this situation, very likely, elected assemblyman may jump-ship to another coalition vice versa. So, share market very likely will through months of instability. Dead share market was expected.


Even said so, Bursa Malaysia will definitely still be operating, not as published in one of the advertisement by political party. Hahaha. It's funny to see that kind of advertisement.

Comments

Popular posts from this blog

"You Can Keep Your Existing Health Insurance"

5 Unusual Tricks to Help you Save Up

Things We Now Know