What to do now when Dow Jones fall 350 points?

What happened?

>> Dow Jones Index crack below 15,000 level convincingly.

>> Foreign investor took the signal of QE coming to an end as an excuse to exit emerging market, including Malaysia.

>> Net foreign selling in local index RM283m yesterday, likely to continue today.

What to do?

>> SELL. You may hate me when I say this, sell everything except dividend yield stocks which has return of > 5%.

>> All the indicators are bearish. USD strengthen against Ringgit, commodity price tumble, Malaysia bond yield got sold significantly and pushing its yield up.

>> Index may fall below 1750 today, support at 1700 next week.
Roughly I expect KLCI to end at 1740-1750 today, meaning down about 10 points to 20 points.

>> Collect Maxis at RM6.50. If the fall is so great that Maxis pushed to RM6.50, can collect a bit. Annual dividend 40 sen, so getting 6.2% dividend yield from KLCI stocks should be OK.