The stock markets are forward looking institutions. Those who do not recognise this fact cannot invest successfully because it is difficult for them to accept a change in trend months before the signs become obvious. While nobody can predict the future with certainty, experience, objective thinking, and having deep and wide knowledge can greatly enhance the accuracy of one’s forecasts. i Capital’s bearish medium-term target of 800-900 for the KLSE is indeed very forward looking and brave but it is based on sound reasoning. Petronas posted a huge loss in 4Q 2014 but the worst has yet to come. With the government’s major source of revenue being severely curtailed, Malaysians need to brace for really tough times ahead.