Hi everyone, it's been a long time i haven't post any update here. The main reason is i have a hard time predicting where the market is going to go, i guess that goes the same for some of you out there.
For the 3rd quarter of 2007, it is a tough quarter for most of the trader i believe. Even Hedge funds manager struggle to perform, professional trader suffer losses due to the highly volatile and uncertain world stock market. On top of that, increased oil price created a significant amount of risk to the economy.
~Subprime Mortgage issue
From the 2nd quarter, the subprime issue, which leads to the breaking of trust among the banks. A lot of investor are questioning about the investment banks rating for the CDO. A triple A credit rating is actually just a triple B or a single A rating. Investor no longer trust the rating and flee from this assest, massive redemption is happening in US and then spread to UK nothern rock. The effect is slowly price in to the market, we've seen banks reporting on the first quarterly loses on the Fix Income and CDO. As there will be more deliquent cases mount up, so the subprime issue may continue to worsen for the coming quarter.
~Carry Trade rewind
After which risk willingness start to unwind, so do carry trades. And what does that mean? The era of an easy money is finally come to an end. As investors not willing to take risk, the fund will flight to safety asset and if it continue to worsen, the liquidity will soon dry up.
~USD weaken to record low
Japan and China led a record withdrawal of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields. USD slided further after the first US interest rate cut of 50 basis point. Especially against EUR, CAD and AUD. Will FED cut interest rate again this 31 Oct? And what will the G7 meeting mean during this time? Rumours about some of the European union expressing the disappointment on High EUR dollar is hurting the economy, but US seems to be comfortable with the USD weakening, which will benefits the economy during this market down turn.
Let's revise some of the big headline news for the past few months:
- Alan Greenspan predicted the coming of the US recession.
- Bear Sterns Hedge fund collapse.
- The bank of England bail out the northern rock mortgage institute.
- Barclays drop the acquicision plan of ABN AMBRO.
- Warren Buffett drop the plan to buy stake in Bear Sterns, and sold some holding in chinapetro.
- China inflation at all time high.
- India regulatory change, investment halt.
- Oil reach $90 per barrel.
~How will all this things gonna end up ?
A prediction done by a reputable bank's chief investment officer for your reference: (US Market)
- 40% chance of prolonged soft landing.
- 20% chance of a short soft landing.
-30% chance of a short recession.
- 10% chance of a prolonged recession.
So the fact is US is going to slow down. Whether it is a soft landing or a recession.
Next article i will discuss about how US recession will affect Asia and the rest of the world. And where shall we invest? Stay tune.
Thursday, 18 October 2007
Thursday, 28 June 2007
Unit Trust Performance Update
This week has been a bad week for most of the equity fund investor.
The Top worst performing sector would be Resources & Property(Henderson).
Single country fund wise, Malaysia is the one that has been affected most.
Since the newspaper article on 'Henderson Eur investment profit slashed' published on business times, all of its property fund include global & asia all suffer a lost. It could be due to sentiment issue initially, but unfortunately the world market went through a minor correction at the same time.
Generally, most of the south east asia equity fund fall, Malaysia is among the top in terms of profit loss.
The Top worst performing sector would be Resources & Property(Henderson).
Single country fund wise, Malaysia is the one that has been affected most.
Since the newspaper article on 'Henderson Eur investment profit slashed' published on business times, all of its property fund include global & asia all suffer a lost. It could be due to sentiment issue initially, but unfortunately the world market went through a minor correction at the same time.
Generally, most of the south east asia equity fund fall, Malaysia is among the top in terms of profit loss.
Daily Market Update
US was weak yesterday( a little bit down, where all other region start to have strong rebound ) with Fed’s comments about the economy likely to grow at a moderate pace. FOMC leave rates unchanged as inflation is still the greatest concern. The last few data release was not as rosy as expected and investors are factoring it into their valuations.
China dropped 4% yesterday due to concerns that it may be placing out a 200 billion bond that may suck up some liquidity from the market. The lingering fears that more capital controls measures are on the horizon are also affecting consumer sentiment. We’ll see some range trading for the short term.
Hong Kong will see some upside once China mobile finalizes the IPO launch in China. Otherwise the mid term resistance is at 22,000.
In Singapore, we seem to be bullish in the property and construction sector and there’s further upside to be seen. However it seems like it may be over inflated soon, recent papers have been harping about what happened in the property boom back in the 90‘s where speculators will buy 2-3 houses and in turn sell them off for a quick profit. This time it’s the foreigners that is buying the majority of the premium launches, so should the money flow out of Singapore we may be faced a similar situation like in the 90’s.
News Headlines
S'pore retail rents continue to climb in H1
NOL orders eight container ships worth US$1b
SPH's Paragon revalued at $1.82b
US durable goods demand falls 3% in May
China shares drop 4.03% on bonds jitters
Keppel Land signs MOUs for China projects
Lee Shau Kee seeks to sell Suntec Reit stake
Ascendas plans fund for its China projects
SingTel buys stake in Pakistani telco
China dropped 4% yesterday due to concerns that it may be placing out a 200 billion bond that may suck up some liquidity from the market. The lingering fears that more capital controls measures are on the horizon are also affecting consumer sentiment. We’ll see some range trading for the short term.
Hong Kong will see some upside once China mobile finalizes the IPO launch in China. Otherwise the mid term resistance is at 22,000.
In Singapore, we seem to be bullish in the property and construction sector and there’s further upside to be seen. However it seems like it may be over inflated soon, recent papers have been harping about what happened in the property boom back in the 90‘s where speculators will buy 2-3 houses and in turn sell them off for a quick profit. This time it’s the foreigners that is buying the majority of the premium launches, so should the money flow out of Singapore we may be faced a similar situation like in the 90’s.
News Headlines
S'pore retail rents continue to climb in H1
NOL orders eight container ships worth US$1b
SPH's Paragon revalued at $1.82b
US durable goods demand falls 3% in May
China shares drop 4.03% on bonds jitters
Keppel Land signs MOUs for China projects
Lee Shau Kee seeks to sell Suntec Reit stake
Ascendas plans fund for its China projects
SingTel buys stake in Pakistani telco
What's going on?
US Stocks had a strong day yesterday after having rejected new lows. Still, the big picture is a double-top in S&P500 (bearish), but we might see another strong day today.
Carry Trades getting picked up, but credit spreads are widening a tad.
Gordon Brown took over the prime minister position in the UK. He is likely to be a short-term draw on the UK economy, but David Cameron will take over at next election (bullish for FTSE and GBP).
US GDP revisions for Q1 due today. Also the FOMC Statement after the rate decision today is important (expected at 5.25% - unchanged).
Carry Trades getting picked up, but credit spreads are widening a tad.
Gordon Brown took over the prime minister position in the UK. He is likely to be a short-term draw on the UK economy, but David Cameron will take over at next election (bullish for FTSE and GBP).
US GDP revisions for Q1 due today. Also the FOMC Statement after the rate decision today is important (expected at 5.25% - unchanged).
Wednesday, 27 June 2007
Market Update
Stock market continue to fall in all region, except for China.
JPY Yen carry trade continue to rewind as investor fear of foreign riskier asset now and as well as due to the comments made by Omi a day before. On the other side USD stronger before the FOMC meeting.
Oil & Gold price fall this morning, thus AUD suffer also. Whereby the NZD still find some support, despite the RBNZ stressed that continuous intervention will be inforce.
Base on today's data, the market seems not done with the profits taking or emotional selling. But S&P 500 still within safety range not reach 1490 yet. So, tonight Dow's market reaction will give a clearer picture.
JPY Yen carry trade continue to rewind as investor fear of foreign riskier asset now and as well as due to the comments made by Omi a day before. On the other side USD stronger before the FOMC meeting.
Oil & Gold price fall this morning, thus AUD suffer also. Whereby the NZD still find some support, despite the RBNZ stressed that continuous intervention will be inforce.
Base on today's data, the market seems not done with the profits taking or emotional selling. But S&P 500 still within safety range not reach 1490 yet. So, tonight Dow's market reaction will give a clearer picture.
Tuesday, 26 June 2007
Market Commentary 26 June 2007
Asian Market fall for the 3rd consecutive day. Due to the US subprime loan issue and the comment that made by Head of People's Bank of China regarding interest rate hike may not be done yet
Locally, Citigroup wrote a research asking investor to sell in Singapore and buy Taiwan, as Singapore is now an expensive market. What it means is though there’s more upside to the market, it is considered expensive relative to Taiwan, which has better valuations.
Analyst are also expecting Singapore’s inflation to increase as well as it is believed that the property market is 'just at the beginning of its expansion phase' and that increased activity in en-bloc sales, the integrated resorts and a pick-up in demand for retail office space indicate that Singapore's construction sector should be a major driver of growth.
On the other hand, the JPY advances on a couple of comments from Finance Minister Omi, who stated that it is important that investors realize the risk of one-way bets against the currency
Most important data to watch out today is the US Consumer Confidence and New Home Sales. This coming thursday would be the FOMC rate decision meeting again, watch out for it also.
Locally, Citigroup wrote a research asking investor to sell in Singapore and buy Taiwan, as Singapore is now an expensive market. What it means is though there’s more upside to the market, it is considered expensive relative to Taiwan, which has better valuations.
Analyst are also expecting Singapore’s inflation to increase as well as it is believed that the property market is 'just at the beginning of its expansion phase' and that increased activity in en-bloc sales, the integrated resorts and a pick-up in demand for retail office space indicate that Singapore's construction sector should be a major driver of growth.
On the other hand, the JPY advances on a couple of comments from Finance Minister Omi, who stated that it is important that investors realize the risk of one-way bets against the currency
Most important data to watch out today is the US Consumer Confidence and New Home Sales. This coming thursday would be the FOMC rate decision meeting again, watch out for it also.
Monday, 25 June 2007
Common Misunderstanding About Unit Trust
Most of the Unit Trust investor are stocks trader as well.
And a lot of time they tend to think that both of this two financial instrument has the same characteristic. Today we are going to look at some of the common misundertandings that lots of investor are embracing.
Misunderstanding #1 : The price.
Investor tends to think that high NAV prices means the fund is expensive. The truth is we need to understand the underlying stocks(if it is an equity fund) that the fund is holding. If the underlying asset are all undervalue stocks, then even a fund with NAV price of US$108 is consider cheap if compare to a funds with low NAV US$0.97 but most of the underlying assets are overvalued stocks. I've heard many people rushing to buy the so called 'cheap fund' without first read the factsheet of the fund.
Nowadays some fund houses also adapt a marketing strategy of "spliting" the NAV prices, so that it looks cheap to those retail investor who still embrace the wrong concept of NAV prices.
Misunderstanding #2 : New Fund
There's nothing new under the sun! New Fund doesn't equal to IPO(initial public offering). A term that is used to describe the first sale of a corporation's common shares to investors on a public stock exchange. Guess what? People love that so much cause it has the potential of generating high percentage of return in days.
Now Asset management company is also a sales company. They launch new funds after new funds cater for the markets need. Most of the time it's base on market hype. 2 years ago, if you walk in any bank or wealth management company, they will show you India fund, and each of them will tell you that theirs is the best India fund. A year ago, you would probably be recommended to take up the China fund instead. There's nothing wrong to move/rebalance your fund to a more attractive market/sector. But what i'm saying is don't buy into a fund just because its new. For example, earlier of the year there's a vietnam fund being launched by an asset management company, it almost become the best selling fund, and everyone seems to rushing in. Well, i guess you know what i'm going to say next. It doesn't perform! But don't get me wrong, i'm not saying it is a bad fund, and i believe it will perform in long term, so the point here is know yourself, know your objective and time frame of investment before commiting anything.
Misunderstanding #3 : Management Fees
A lot of time investors tend to make decision base on the fund's management fees. Frankly speaking if the fund can outperform the market by 10% more, why should we penalize the fund for charging 1 or 1.5% more of management fees. I'm not comparing a fix income fund with an equity fund, because the fix income fund has to be lower in terms of fees, due to less transaction/deal involve. But when we compare the same category fund, i think we should focus more on the performance of the fund and the ability of the fund manager instead.
And a lot of time they tend to think that both of this two financial instrument has the same characteristic. Today we are going to look at some of the common misundertandings that lots of investor are embracing.
Misunderstanding #1 : The price.
Investor tends to think that high NAV prices means the fund is expensive. The truth is we need to understand the underlying stocks(if it is an equity fund) that the fund is holding. If the underlying asset are all undervalue stocks, then even a fund with NAV price of US$108 is consider cheap if compare to a funds with low NAV US$0.97 but most of the underlying assets are overvalued stocks. I've heard many people rushing to buy the so called 'cheap fund' without first read the factsheet of the fund.
Nowadays some fund houses also adapt a marketing strategy of "spliting" the NAV prices, so that it looks cheap to those retail investor who still embrace the wrong concept of NAV prices.
Misunderstanding #2 : New Fund
There's nothing new under the sun! New Fund doesn't equal to IPO(initial public offering). A term that is used to describe the first sale of a corporation's common shares to investors on a public stock exchange. Guess what? People love that so much cause it has the potential of generating high percentage of return in days.
Now Asset management company is also a sales company. They launch new funds after new funds cater for the markets need. Most of the time it's base on market hype. 2 years ago, if you walk in any bank or wealth management company, they will show you India fund, and each of them will tell you that theirs is the best India fund. A year ago, you would probably be recommended to take up the China fund instead. There's nothing wrong to move/rebalance your fund to a more attractive market/sector. But what i'm saying is don't buy into a fund just because its new. For example, earlier of the year there's a vietnam fund being launched by an asset management company, it almost become the best selling fund, and everyone seems to rushing in. Well, i guess you know what i'm going to say next. It doesn't perform! But don't get me wrong, i'm not saying it is a bad fund, and i believe it will perform in long term, so the point here is know yourself, know your objective and time frame of investment before commiting anything.
Misunderstanding #3 : Management Fees
A lot of time investors tend to make decision base on the fund's management fees. Frankly speaking if the fund can outperform the market by 10% more, why should we penalize the fund for charging 1 or 1.5% more of management fees. I'm not comparing a fix income fund with an equity fund, because the fix income fund has to be lower in terms of fees, due to less transaction/deal involve. But when we compare the same category fund, i think we should focus more on the performance of the fund and the ability of the fund manager instead.
Sunday, 24 June 2007
Forex
What is Forex? It is the short form of Foreign Exchange. It is the simultaneous buying of one currency and selling of another. They are executed in pairs, for example, the Euro dollar and the US dollar (EUR/USD) or US dollar and Japanese Yen (USD/JPY).
Foreign Exchange market is the largest financial market in the world, believe to have a daily volume of over $1.95 trillion. It is more than 3 times the total amount of the stocks and futures markets combined.
FOREX spot market doesnt have a physical location or a central exchange, it operates through an electronic network of banks, corporations and individuals trading for one currency with another. It basically operates 24 hours a day, 5 and 1/2 days a week.
In todays market, there's a ncreasing population about currencies trading, since now it is easily available for individual trader out there. And it has created exciting opportunities and new profit potentials besides trading stocks and shares. Forex Market offers great potential for profitable trading in any market condition or any stage of the business cycle.
But Forex trading also deemed as one of the riskiest trading instrument available, because of its margin leverage and fluctuation of the currencies. Those who are interested to learn more about Forex trading, i recommend you start off with a demo account and start getting a hold of it first before you play with the real money.
I have put up some relevant link and forex brokers link here for your reference. You can browse through the pages and learn more about Forex Trading.
* Disclaimer: Forex trading is not suitable for all investor, boys please stay out of it ! *
Best Performing Funds ( funds avail. in SG )
What a surprise!
This month's best performing fund is a Tech fund from 'First State Asia Inno & Tech'. Close to 12.5%. Is it true that the long submerge industry starts to resurface again? Technology sector has awaken!
Subsequently we have most of the China fund on our list. Given China has gone through a series of tighthening process not long ago. It seems like nothing can stop them now!
Here is the top 3 China funds : SGAM Golden China Fund, DWS China Equity Fund & Fidelity China Focus.
This article serve for information purpose only, not an investment advice.
Need more info? Feel free to email me.
This month's best performing fund is a Tech fund from 'First State Asia Inno & Tech'. Close to 12.5%. Is it true that the long submerge industry starts to resurface again? Technology sector has awaken!
Subsequently we have most of the China fund on our list. Given China has gone through a series of tighthening process not long ago. It seems like nothing can stop them now!
Here is the top 3 China funds : SGAM Golden China Fund, DWS China Equity Fund & Fidelity China Focus.
This article serve for information purpose only, not an investment advice.
Need more info? Feel free to email me.
Saturday, 23 June 2007
Friday, 22 June 2007
Market update 22 June 2007
I wish to highlight some key point here:
Previous session: US market drop on concern about Mortgage investor & the collapse of the Bear Stearn's Hedge Fund.
Subprime Loan Issue resurface again, and could it be worse?
Central Bank of New Zealand being challenged by investor, the intervention failed to neutralise the yen carry trade.
Business Time today reported a few interview done with the expert, pointed out there might be a major correction coming on the way, the magnitute could be 20 to 70 percent.
Oil price currently 69.14 per barrel.
Just as i am writting this update, US market headed down again about 141 points.
Previous session: US market drop on concern about Mortgage investor & the collapse of the Bear Stearn's Hedge Fund.
Subprime Loan Issue resurface again, and could it be worse?
Central Bank of New Zealand being challenged by investor, the intervention failed to neutralise the yen carry trade.
Business Time today reported a few interview done with the expert, pointed out there might be a major correction coming on the way, the magnitute could be 20 to 70 percent.
Oil price currently 69.14 per barrel.
Just as i am writting this update, US market headed down again about 141 points.
Wednesday, 20 June 2007
UK share of Henderson investment slashed
The Business Times, Thursday, June 21, 2007 Page 27 on Property
The news talks about the Henderson european property investment will start to adjust their portfolio, UK proportion to drop to 10% from 60% last year. The article is written by Patrick Bushnell head of European Investment.
The news talks about the Henderson european property investment will start to adjust their portfolio, UK proportion to drop to 10% from 60% last year. The article is written by Patrick Bushnell head of European Investment.
Speculator or Investor
Speculator or Investor?
To me they are no different. Both of them are trying to earn some profits out of the investment.
One aiming at reasonable returns, while the other, abnormal returns.
Well if you are a pessimist, you will say that speculators are merely gambling. But if you are optimist, you would probably say they are opportunities seekers. There's no right or wrong, because both are trading legally. They can't fault each other.
Speculators also contributing to the market liquidity, but most of the time when the market is too high, or rising at an abnormal pace, they are to be blamed. They are blamed for inputing risk/volatility into the market. Well as if there won't be any fluctuation in the market if there's no speculator...
Technically speaking, investors trade with a system, or with a strategy and of course contingency plan, everything is well engineered. They have steps to follow. But Speculators trade with market 'noise', their emotional feeling - the six sense and last but not least they trade what other is trading.
Have u ever come across with speculators that refuse to believe they are speculator and investors that act like speculator? Just a joke.
The above is solely a personal opinion. No personal attact intention. Welcome your feedback.
To me they are no different. Both of them are trying to earn some profits out of the investment.
One aiming at reasonable returns, while the other, abnormal returns.
Well if you are a pessimist, you will say that speculators are merely gambling. But if you are optimist, you would probably say they are opportunities seekers. There's no right or wrong, because both are trading legally. They can't fault each other.
Speculators also contributing to the market liquidity, but most of the time when the market is too high, or rising at an abnormal pace, they are to be blamed. They are blamed for inputing risk/volatility into the market. Well as if there won't be any fluctuation in the market if there's no speculator...
Technically speaking, investors trade with a system, or with a strategy and of course contingency plan, everything is well engineered. They have steps to follow. But Speculators trade with market 'noise', their emotional feeling - the six sense and last but not least they trade what other is trading.
Have u ever come across with speculators that refuse to believe they are speculator and investors that act like speculator? Just a joke.
The above is solely a personal opinion. No personal attact intention. Welcome your feedback.
Tuesday, 19 June 2007
Market Update ( Asian session ) 19 June 2007
Asian market generally doing well today, despite S&P fail to keep the rising momentum, but the strength seems to be dampened.
Japan manage to rebound from the fall earlier on and ended with positive note today. Research shows that the japanese household unit trust investment has increased approximately 25% during the first quarter of the year. They are now more willing to invest rather than put it in the savings account. But could this help the japanese economy to rebound or it's going to be yet another disappointment? Yen continued to fall against most crosses, especially against EUR.
China's stocks rose for the 10th day in the past 11, pushing the benchmark CSI 300 Index to a record on expectations investors will keep shifting money into equities from bank deposits.
Japan manage to rebound from the fall earlier on and ended with positive note today. Research shows that the japanese household unit trust investment has increased approximately 25% during the first quarter of the year. They are now more willing to invest rather than put it in the savings account. But could this help the japanese economy to rebound or it's going to be yet another disappointment? Yen continued to fall against most crosses, especially against EUR.
China's stocks rose for the 10th day in the past 11, pushing the benchmark CSI 300 Index to a record on expectations investors will keep shifting money into equities from bank deposits.
Monday, 18 June 2007
Unit Trust Investment
Unit Trust investment has become a common financial tool for people to park their life saving these few years. Due to it's higher than expected return.
But what is Unit Trust actually?
Here i would like to quote an explaination from Wikipedia " Unit Trust Investment is a way of investing money with other people to participate in a wider range of investments than may be feasible for an individual investor and to share the costs of doing so. "
Unit trusts are open-ended investments; therefore the underlying value of the assets is always directly represented by the total number of units issued multiplied by the unit price less the transaction or management fee charged and any other associated costs(Expense Ratio). Each fund has a specified investment objective to determine the management aims and limitations.
Generally, we can categorize unit trust into Equity fund, Balanced fund, Fixed Income fund & Money Market fund. Each category represents the underlying assets that the fund investing in. For example, Stocks & Shares, Bonds, Commodities, Currencies, Property, Gold and etc. Those funds are designed for investor with different risk tolerance. From high risk, moderate risk to low risk investor.
So what are the benefits of investing through unit trust?
-can start with small amount.
-we can have professional money manager to manage for us.
-the risk is diversified.
-easy access to oversea's investment and different asset classes.
-easily bought and sold, no liquidity problem.
Given the nature of unit trust, it is more of a medium to long term kind of investment, and very often, it is utilised by professional out there to do 'strategic asset allocation'. Where by they help the client to do a proper diversification of their funds into different asset classes, base on client's risk profile and objectives. A lot of time consumer in the market making a mistake to purchase a particular unit trust because they like the idea of the fund or because it's new, hot from the oven. They failed to do a proper planning, it is obvious, because most of the time all these investor purchase on an adhoc basic, or under a strong persuasion by promoter.
Failing to do a proper planning can cause a financial disastres sometimes. Cash flow issues will tie you down and force you to liquidate your fund even when the investment is making loses. Following blindly with the majority doesnt guarantee profits. Know yourself, and do your own research. How do we define the 'best' fund? It might not be the highest return fund, or most stable fund, it should be the one that fits your objectives and risk profile most.
So the advice here is do your own financial planning, spend time on reading and reseach before you make any move or seek advice from the professionals. Remember those are your hard earn money. Invest wisely !
But what is Unit Trust actually?
Here i would like to quote an explaination from Wikipedia " Unit Trust Investment is a way of investing money with other people to participate in a wider range of investments than may be feasible for an individual investor and to share the costs of doing so. "
Unit trusts are open-ended investments; therefore the underlying value of the assets is always directly represented by the total number of units issued multiplied by the unit price less the transaction or management fee charged and any other associated costs(Expense Ratio). Each fund has a specified investment objective to determine the management aims and limitations.
Generally, we can categorize unit trust into Equity fund, Balanced fund, Fixed Income fund & Money Market fund. Each category represents the underlying assets that the fund investing in. For example, Stocks & Shares, Bonds, Commodities, Currencies, Property, Gold and etc. Those funds are designed for investor with different risk tolerance. From high risk, moderate risk to low risk investor.
So what are the benefits of investing through unit trust?
-can start with small amount.
-we can have professional money manager to manage for us.
-the risk is diversified.
-easy access to oversea's investment and different asset classes.
-easily bought and sold, no liquidity problem.
Given the nature of unit trust, it is more of a medium to long term kind of investment, and very often, it is utilised by professional out there to do 'strategic asset allocation'. Where by they help the client to do a proper diversification of their funds into different asset classes, base on client's risk profile and objectives. A lot of time consumer in the market making a mistake to purchase a particular unit trust because they like the idea of the fund or because it's new, hot from the oven. They failed to do a proper planning, it is obvious, because most of the time all these investor purchase on an adhoc basic, or under a strong persuasion by promoter.
Failing to do a proper planning can cause a financial disastres sometimes. Cash flow issues will tie you down and force you to liquidate your fund even when the investment is making loses. Following blindly with the majority doesnt guarantee profits. Know yourself, and do your own research. How do we define the 'best' fund? It might not be the highest return fund, or most stable fund, it should be the one that fits your objectives and risk profile most.
So the advice here is do your own financial planning, spend time on reading and reseach before you make any move or seek advice from the professionals. Remember those are your hard earn money. Invest wisely !
Investment Psychology
Over the years, i have done lots of research and studies, as well as my own experience, taught me that investment psychology is what separates the pros and newbies.
By natural all people are emotionally attached to their money. Here i would assume that the money we use to invest have already defined as nonessential to your well being. Thus, we must cultivate a habit of emotional detachment from the money we invested. (Well, i'm saying emotional detachment not indifference) Else each wrong investment will end up with stress, worry and fear.
Greed is the greatest barrier that we should overcome when we come to investment. Most of the time, it causes those who started up well to end up with huge loses. So in order to overcome greed or become emotional, we need to set our goals, i mean realistic goals! When we reach our goal, and if it is time to get out the market, just do it! No point risking yourself for that few more dollars that you think you could earn.
Besides greed, overconfidence is another emotional component that we should be aware of. One very profitable trade can induce us to become "gung-ho" and trade with bigger amount, or increase the number of trades that one could effectively manage. Overconfidence tends to breed avarice and eventually it leads to financial shakiness.
So how do we overcome it?
-trade with the money we can afford to lose.
-try to "listen" to the market instead of impose our will on the market.
-don't be too close to the market, if you are making a longterm investment.
-don't get too elated over a win or too depressed over a loss.
-do not panic but make adjustment to your trading strategy.
-treat investment as a business and not a hobby.
-golden rule to follow, buy low and sell high.
By natural all people are emotionally attached to their money. Here i would assume that the money we use to invest have already defined as nonessential to your well being. Thus, we must cultivate a habit of emotional detachment from the money we invested. (Well, i'm saying emotional detachment not indifference) Else each wrong investment will end up with stress, worry and fear.
Greed is the greatest barrier that we should overcome when we come to investment. Most of the time, it causes those who started up well to end up with huge loses. So in order to overcome greed or become emotional, we need to set our goals, i mean realistic goals! When we reach our goal, and if it is time to get out the market, just do it! No point risking yourself for that few more dollars that you think you could earn.
Besides greed, overconfidence is another emotional component that we should be aware of. One very profitable trade can induce us to become "gung-ho" and trade with bigger amount, or increase the number of trades that one could effectively manage. Overconfidence tends to breed avarice and eventually it leads to financial shakiness.
So how do we overcome it?
-trade with the money we can afford to lose.
-try to "listen" to the market instead of impose our will on the market.
-don't be too close to the market, if you are making a longterm investment.
-don't get too elated over a win or too depressed over a loss.
-do not panic but make adjustment to your trading strategy.
-treat investment as a business and not a hobby.
-golden rule to follow, buy low and sell high.
General Currencies & Rates Updates
Interest rate for the month of June:
NZD : 8.00% UP
AUD : 6.25% -
GBP : 5.50% UP
USD : 5.25% -
EUR : 4.00% UP
JPY : 0.50% -
Important event to take note:
Data for June 18 – June 25
Date / UK Economic Data
Jun 17 :Rightmove House Prices (JUN)
Jun 20 :Bank of England Minutes
Jun 21 :CBI Industrial Trends (JUN)
Data for June 18 – June 25
Date / Japan Economic Data
Jun 18 :NAHB Housing Market Index (JUN)
Jun 19 :Housing Starts (MAY)
Jun 21 :Leading Indicators (MAY)
Markets consolidating:
No important data in the next couple of days. Play the ranges and go for dips in the Carry Trades.
Disclaimer : Trade at your own risks. Any suggestion or recommendation provided here is for reference purpose, i shall not liable for any loses that incur from the trades.
NZD : 8.00% UP
AUD : 6.25% -
GBP : 5.50% UP
USD : 5.25% -
EUR : 4.00% UP
JPY : 0.50% -
Important event to take note:
Data for June 18 – June 25
Date / UK Economic Data
Jun 17 :Rightmove House Prices (JUN)
Jun 20 :Bank of England Minutes
Jun 21 :CBI Industrial Trends (JUN)
Data for June 18 – June 25
Date / Japan Economic Data
Jun 18 :NAHB Housing Market Index (JUN)
Jun 19 :Housing Starts (MAY)
Jun 21 :Leading Indicators (MAY)
Markets consolidating:
No important data in the next couple of days. Play the ranges and go for dips in the Carry Trades.
Disclaimer : Trade at your own risks. Any suggestion or recommendation provided here is for reference purpose, i shall not liable for any loses that incur from the trades.
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