Look for opportunity!
The market has remained inside the trading range of 4800 to 4500, however, opportunities will present themselves.
Last Friday Dubai World looked in trouble. Don’t get me wrong, they are. The point is that the market is still very nervous, this sign of trouble saw the market dip 3% on Friday and then recover the same amount the following Monday.
The issue here is one of news flow; investors have a “shoot first ask questions later” policy. If they see trouble they will sell and reduce their exposure first and then analyse the problem.
It is this mentality which provides opportunity.
The large players in the market at present are more about Monkey see, Monkey Do. They copy each other and follow each other. This allows small investors like ourselves to take advantage of their herd like mentality and take their money.
My view is that the market is getting back to normal, opportunities are out there and investors once again need to be working their portfolios to maxmise their returns.