money money money

Too much of something is never good. I totally agree with that.

Despite the fact that "more money equals to more happiness" is very true to a certain extent, sadly to say this is not always the case.

look at the chart here. This is the M2 figure in Malaysia. M2 is one of the measurement used to quantify how much liquidity we have in the system. The chart below shows that the system is basically flushed with liquidity.

wow.

there are just so much foreign interests in our local market, both bond and equity. But is this the sole cause for the rallies in our local markets? Might be, it might not. But hey, is our market overvalued now?

guess it has been a old story that everyone been mentioning every now and then. One of my friend once told me that " not everything will follow the law of gravity. It doesn't mean what goes up must come down". Ya right. guess the difference is the timing / investment horizon.

for the time being, like what our friend Clovis said, just close your eye and enjoy the ride. But of course, all good things will come to an end. When the day comes, well. Hope that we don't get burnt that much.

Any lead?

For me, when there's a huge negative news flow through the market, it will cause a contagion effect and domino effects will kick in.

For clovis, 1) reversal of yen carry trade 2) The "collapse" of china and 3) deepening of US sub prime woes...

till then, happy investing. ;)