When China’s nine-percent market drop precipitated a mini-correction in late February through early March, several other countries took bigger falls. Count Malaysia as one of them. It suffered one of the biggest drops that appeared to spell the end of its breathtaking 60-percent climb that began in June 2007.
But not so fast. Malaysia has not only rebounded, but as the chart of the Malaysia iShares (EWM) shows, it broke through resistance at its previous top to reach a new high last week.
Can the country’s rising wealth, growing middle class, and recent reforms continue to push EWM to new heights? The chart’s RSI of over 70 isn’t greatly oversold. It exceeded 90 in its last run, and the MACD is looking bullish. What’s more, its 20-day moving average just crossed above its 50-day.
If the market can stay away from major scares that would reawaken risk aversion, Malaysia is giving every sign of another major climb.
After earning his Masters from the London School of Economics, Andrew has enjoyed a 25-year business career that has taken him around the world. He’s been involved in infrastructure in Indonesia, port development in Russia, road construction in Malaysia and environmental services in China. He’s also authored six books on the global markets, including China’s Oil and Gas Industry, and The World Coal Market.
Andrew has spent his entire career evaluating companies and appraising investments and he is a proponent of the idea that a healthy portfolio is not dependent on flourishing markets. He specializes in identifying deep value companies with a solid margin of safety as well as income investments with a strong potential for capital gains. He has also become a leading expert in utilizing Exchange Traded Funds (ETFs) to profit from rising and falling market sectors.
Andrew is currently the Editor-in-Chief of three monthly investment research services – INCOME,Red Flag Insider, and The Wealth Advantage. He resides in Delray Beach, FL and Catonsville, MD, with his wife and two children.
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