A look at valuations and reasons to buy - or sell

USUALLY at any given point in time, it is possible to find compelling reasons to either buy or sell. After all, that is how markets work - investors with opposing views jostle for the best prices and as long as the playing field is level and all investors have equal access to the same information, then the outcome should be that the market finds its own level, which should be a fair reflection of the consensus opinion.

The problem with the present state of the local market - as well as others in the region such as Hong Kong - is that having enjoyed a stellar first half, it is becoming more difficult to justify continued buying; yet neither is it possible to be wholly negative because the fundamental outlook is improving and growth appears to be picking up.

Some might argue that having an indifferent outlook such as is the case now is the least desirable position to be in because there is no clarity at all as to what an investor should do. Moreover, in a market trapped within narrow bands, traders find it difficult to make money as it requires them to have pinpoint timing skills.