thank you broker al ain and dragonfire for the hospitality with which you welcomed me to the forum
I dont think this is the arabic hospitality people here brag about
Secondly about the stock bubble posting
I didnt mean to let anyone fear about anything and if you guys really trust the companies here then you shouldnt have doubts no matter what happens but since you worry about someone who just puts his opinion then this can tell me that you dont really trust the companies
Regarding Namoura he is not a guy or a person
if you people knew enough about finance then you should know that Namoura is the biggest brokerage firm in Japan and we know how much ahead of us they are
their expectations are based on facts not on hopes and greed like you guys
a high price to earning ratio obviously means that the stock is over-valued and this what the frim was warning people from

i would like to tell you that you are free to invest your life-time savings in anyplace you like if you dont really care about the risks but dont follow what people do because it is like you are throwing yourself and your money into the sea just because someone did that before you
Another advise to the people is that when you are investing you should have a well diversified portfolio or stocks from industries that move against each other so you can minimize your risk and you cant do that in dfm because most of the stocks move up or down together
finally, i would like to mention about something i read here about the saudi investor who made the price of emaar crash because he sold his stocks, I want someone to explain to me how this is a good financial market if only one person can make such a huge impact on it
in the new york stock exchange if Bill Gates with his 44 billions cant do anything that will affect the market so that is a good place to invest in

9 thoughts on “Stock Bubble”

  2. I hope everyone here listens to the likes of Mr. Mansouri who have a good knowledge and dont run after rumors posted from any person who doesn’t have any knowledge in finance

    By the way, I forgut to introduce myself in this forum

    My name is Mohammad Madani
    I’m persian and I’m currently studying in the American University of Sharjah
    About my family name, I don’t really know where it came from but our family name was Nabina originally and for some odd reason they changed it to Madani
    I can read and speak arabic but I never tried writing in Arabic so excuse me for writing in English

    Thank you all for your replies
    and I think this a good lesson for me in life
    People here don’t like to read or hear what goes against their wishes
    Therefore, in my next postings I will force myself to lie on you and just talk about how strong and efficient the market here is

  3. Madani

    I would guess from your name that your mother language is arabic, but if you do not speak, write or read arabic then I will continue posting in English ,which I rather not.

    lets start from th ebegining and see where we can have some common groud and unfortunatly uncommon ground.

    ——————-

    First of all, we all know Numora very well, it is a Bank, an Investmetn firm and brokerage house based in Tokyo WHICH lost billion of Yens and Dollar in the Japanese equity market which guess why calling it wrong , just the call in th eposted article here
    Second, when I mentioned that a person wrote this nasty article, I mean it thet the name Numora does not write. It is an artificial name for a corporatio.Usually, people within the firm write,( So your take is really funny), thus who wrote the articele. It is not Numora it someone within it, because Numora is just
    the umberla name for the firm

    When you say that we are free to invest our saving, on what basis did you conclude that thisis our saving. Buddy , most of us invest the surplus they have, so don’t guess and make that guess a fact

    In term of risk, your statement is really open and I would grade you with a D, why because risk is functions of many factors . The most critical two factors are age and sourceceof funds . i.e is the money invested a surplus saving or borrowed money etc.

    Which in summary mean utility in finanace is broken into 4 digitit goes from A1 – 4 and as you age or in plain English as you grow older your utility would tend to move toward 4 which mean you would become hi–risk aversion
    by the way utility in finanace menas prefernece for risk/return in
    Markowitz Modren Portfolio Theory

    In any case I do not want to dwell on this but I felt that your take on the subject was really naive to the extent that you start to mix facts

    In term of Emaar, the stock did not crash like what you have implicitly wrote. It has went down in a very systematic way”in English it has gone down over several days, not a 10% one day crash

    Bill gates with 44 billion in MSFTcan not liquidate for a basic reasn He would basically send the stock into free-fall and with the total U.S market, so basically he is locked with it
    ————-

    Madani

    If your are an arabic person, please write in arabic because your English is not matured yet, but if your nationality is not Arabic , I would recommend the that
    you go to any bookstore next to you and buy yourself a basic bookof finance

    Because the term you used in your article( I don’t know if I can call it an artice)such as Stocks move together means in finanace highly correlated stocks and investing in different stocks or industries should be termed diversification or to diversffy your risk
    fix your finance language before coming to this bulletin board and trying to be ….. I’ll just leav it here

    You mentioned that the Japanese are ahead of us, its okay, but the remember that thenumbers they used is arabic and they are a head of us in some parts of their life and behind in others

    You also said that their expectation is based on facts. I do not really agree here, it is based on rational analysis . i.e mixing historical data with current ones to form what might become a probablity under various economic scenario

    If this was the facts, they would not have what went in history to become the Japanese boom and bust in both equities and real estate

    youre term: “greed like you” is not a civilized, so grow up

    global market everywhere fluctuate on greed and fear. chew on this for a while and you might understand it later on in your life

    A reminder

    BUT before you start reading your finanace book, you should brush on your grammer

    i or he in your writing are pronouns and you should write them like this: I He
    comprehendo amigo

    your line: another advise to the people , this is really bad English

    You wrote this:”I would like to mention about somethin” this is grade 1 English

    and alot more I really do not have time to go over them

    I jope you do not have hard feeling.I just thout I would help you>

    K.B.M Al-Mansoori, CFA
    Abu Dhabi

    Do you think that i dont know the markowitz model or the utiliy function or diversification or beta? well I didn’t want to mention them since people don’t understand them a lot

    What seems wierd to me is that someone as smart as yourself who was capable to be one of the few people who pass the CFA exams thinks that a weak market like the DFM is good for your life time savings
    Income is divided into consumption and savings
    anything you don’t consumer you are saving for future consumption

    Regarding my English and Grammar, this is a forum and people usually write in forums as if they were talking face to face so there is no need to pay attention to the smallest details

  4. OK then, you don’t need to be angry. Just listen to Namoura’s advice and get out of the market

    Who knows, they could be right. For me I will just stay a little bit longer (maybe another year). After that I will think about getting out of the market

    first of all im not angry
    secondly i dont need to get out because i was never crazy enough to enter a weak market

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