Here we go again!

Hardly three weeks has passed since the mighty fall in the Shanghai stock market that sent the rest of the world into a selling frenzy. And in a blink of an eye, we are nearly back where we started.

Stock markets are recovering and investors are brimming with confidence again. The pain of the last three weeks have largely been forgotten. And with most markets close to their year highs, one wonders whether it will all happen again... And to come full circle, the Shanghai stock market has already surpassed it's high of the year!!

Our KLSE Composite Index is just 50 points shy of their highs of the year. A lot of feel good news is flowing in: success (?) of Invest Malaysia that just concluded, liberalisation of monetary policies, Iskandar Development Region, good corporate results and upgrades by the international investing communities - fuelling the confidence and growing euphoria in the local stock market. Who would be against the stock market reaching new highs within the next few weeks, especially with the general election to come?

Of course there are external concerns, especially with the slowing U.S. economy, problems within the subprime mortgage markets there, rising interest rates in Japan and China, and recently, rising oil proces (again!), but of course these will be brushed aside unless another major meltdown occurs.

I akin the stock market to a second casino in this country - this is where people pitch in money in the hope to gain more. This is also where the sharks and numero uno predators reign supreme; all others are food to them. The local syndicates and foreign hedge funds play the stock market to their tune and we follow them. To make it in the stock market, one only has not to be greedy! The failings of retail investors in mainly due to greed - if they control themselves and not fail in that aspect a lot of people would have a happier time here. But then that is how the casinos of the world make their money isn't it?

So lets see where the stock markets take us: up or down...