Put warrants needed

20070809 1230. If you open up the Call Warrants sector, there is a dearth of call warrants over companies and even over the indices of KLCI and HSI. But there is something striking, there are no put warrants. This show the one way nature of Bursamalaysia.(except for the FKLI futures contract where one can short while the 90% who can only go long lose money, which is the law of the markets) So, trading the FKLI is far superior to stocks.

In this one way (up) market in Bursamalaysia stocks there are only a few ways to make money:

• Insider trading. You are in cohorts or know people in high places or investment banks/corporate advisors, so are privy to inside info, can 'buy on fact, sell on fact'. If you don't believe me, take a look at any stock chart of a stock that had just made a material corporate announcement. See for yourself how the stock has run up way before the announcement to make the news public.
  
• You have 'contacts'. Those who are the runners who spread 'news flow' for the stock operating syndicates. Just hear the tips, buy and HOPE. But in financial markets, when hope comes into the equation....as in right now in the 'correction', you will get screwed in the end when the music stops and you are still holding the box.
  
• You had a wad of money (preferably about RM1m) four years ago, so bought into blue chip stocks. Collect 2.5-3% dividend per year, ride the ups and downs, and now reap the harvest of 60%-70% gain.
• You were a great thinker with a cunning mind, using 'value investing' principles, buy stocks years ago at below their intrinsic value.(you need a team of people to sieve through the thousands of companies around the world to find value, hopefully you got $ to pay their salaries in the meantime), This is a good and safe way to make money, however it can be like watching grass grow, but in the end you will end up with a bountiful harvest in the forest. The returns will look spectacular if you encounter a multi year bull in equities, but will ge screwed once the market goes into downtrend.