With the current financial turmoil going on in most part of the world, the sign of recession is a no doubt but some countries still denies the fact although their economy is adversely affected. Malaysia's economy for instance truly mirrors the impact of the Dow Jones Industrial Average index on the following trading day. It can't be denied that until the US put an end to the financial turmoil, the economy in other parts of the world shouldn't be better off. Some measures have been taken such as the $700billion bail-out plan and the Federal Reserves cutting interest rates doesn't seem enough to save the economy. All the investors who are optimist turn pessimist in times like this. But does it mean you can't make money in times like this?

According to Warren Buffett, the richest man in the world, " Be greedy when everyone is fearful and be fearful when everyone is greedy" indicates that in times like this there are lots of counters out there which are insanely undervalued which is one of the recipe for his wealth accumulation-buying undervalued stocks ie. Value Investing.

In Malaysia, there are also a lot of good fundamental counters are being undervalued, for example, KNM Berhad, oil & gas equipment company got sold down until 39 sen showed high selling pressure of investors and the most active stock counter in the KLSE. However, with assurance from the group's Managing Director, Lee Swee Eng, the share price rebound to 60-68 sen. Besides, there are still a lot of counters out there are undervalued.

To strenghten the economy in Malaysia, the government will inject RM5 billion(borrowed from EPF) into Valuecap Sdn Bhd, the government investment agency, doubling the investment from the initial RM5 billion to RM10billion to buy undervalued stocks in the local bourse.

A brief introduction on Value Cap Sdn. Bhd... Established in 2002, Valuecap is a fund management company which was created to invest specifically in the Malaysia equities market. Owned jointly by Khazanah, PNB and KWAP, Valuecap’s key mandate is to undertake investments in equities listed on Bursa Malaysia on a portfolio basis, based on superior fundamental investment research.

The government has left it to Value Cap Sdn. Bhd. to decide how to distribute the funds. Analysts believe the funds will be used to invest in index-linked stocks. OSK highlighted 11 potential targets on the Kuala Lumpur Composite Index (KLCI) that Valuecap may go for — MISC, Petronas Gas, DiGi, British American Tobacco, Petronas Dagangan, MAS, Sime Darby, Maybank, IOI, AMMB and MMC. As it stands, however, funds like Valuecap will never reveal what stocks it invests in. It is obliged to make the information public only if its investments in a company exceed the five per cent threshold.

However, there are rumours that the government is bailing out political-linked crony companies in crucial times like this.