The euro hit a 4 years low @ $1.2234US/Euro this morning as a result of uncertainties hovering around the USD$1 trillion bailout package initiated by the IMF and ECB. Apparently investors are unsure how governments in Europe are going to reduce their deficits. Obviously at this stage the governments around the world are printing more and more money which effectively continue to drive up the price of gold albeit we see it falling to a more conservative rate @ USD $1229/oz as of 17 May.
Unable to forseen such circumstances, i've made some rather brash investments over the past 2 months thinking that the volatility of the market should push up falling prices of stocks. This has always the problem with stocks, just when you thought you will miss some bargaining opportunity and eager to grab some shares,some other bad news came along and bring your stocks down further.
Ive come to understand that one should not be in a rush to take position, yet one must not get too influenced and panicked by good or bad news. The fundamentals of the company is of ultimate importance. In a macro point of view one should also take into concern the overall financial health of big corporation and countries. With the fundamental in place, no one should be over intimidated by sudden rise or fall in share price. However, i must emphasize the importance of technical analysis at the same time. The past 2 years has clearly shown that the trend is your friend. Where since march 2009 the trend line produced an upward trend all the way till the recent crisis and now recently we witness a sudden surge in a downward trend due to a major european debt crisis. I wonder is this the beginning of another major crash that we witnessed 2 years ago or just another volatile term in the stock market.
Monday, May 17, 2010
Thursday, May 13, 2010
Gold Rush 2010
The past few days had the world witnessing the price of gold hitting waves of record high at USD$1242/OZ (May 13 2010). This surge was caused by the debt incurred by Portugal, Italy, Greece and Spain AKA PIGS and with bailouts from the European Central Bank (ECB) and International Monetary Funds (IMF).
The last time gold hit a high was during October where it was USD$1222/oz. I realise that whenever there's a bailout package for some regions or country, Gold will always rise. The reason is mainly because gold act as a contingency currency and as a hedge against currency depreciation and inflation.
This trend of rising gold price will no doubt continue to hit new highs in years to come. Reason being, The price of goods and foods will always rise as inflation is a need and for the good of a nation economy. Some economists speculated that gold might hit a high of at least USD1500/oz at year end.
So people might ask questions like; Should i start putting my $$ in gold now?
I recommend if you want to, you should have a long term plan. Although its almost guaranteed that gold will continue to rise even to a higher tipping point in the future. No one knows when is the next dip nor the next surge will be. Long term investment is the best bet to buying gold.
The last time gold hit a high was during October where it was USD$1222/oz. I realise that whenever there's a bailout package for some regions or country, Gold will always rise. The reason is mainly because gold act as a contingency currency and as a hedge against currency depreciation and inflation.
This trend of rising gold price will no doubt continue to hit new highs in years to come. Reason being, The price of goods and foods will always rise as inflation is a need and for the good of a nation economy. Some economists speculated that gold might hit a high of at least USD1500/oz at year end.
So people might ask questions like; Should i start putting my $$ in gold now?
I recommend if you want to, you should have a long term plan. Although its almost guaranteed that gold will continue to rise even to a higher tipping point in the future. No one knows when is the next dip nor the next surge will be. Long term investment is the best bet to buying gold.
Saturday, May 8, 2010
Market looks set for a correction
The past few days has seen the Dow Jones industrial index dropping 6 percent over 4 days. The worst intra - day trade was seen on the 6th of May thursday where the index dropped 10% in a single day trade and then recovered back to a 3% over all loss thanks to a technical glitch.
The market condition in SGX is still fairly weathered, although we seen a drop of around 10% at the same time since the index hit a 14 mths high on mid April. This wave of bearishness were caused by panick selling as a result of the debt crisis in the Europe Region. Additionally, China's intention to increase their central bank's reserve ratio for the third time in 2010 only aggravates the whole situation. This coming monday we shall will see the policy being implemented and nonetheless there will be another wave of sell off in stocks.
However, do look out for stocks dumping to a 2010 low as such stocks will be consider a bargain.
Shipping and Engineering Stocks to look out for bargain hunting this coming week:
Current/Potential after July
Rotary 1.01 / 1.3
Ezra 1.93 / 2.3
Midas 0.97 / 1.1
NOL 1.97 / 2.4
Yangzijiang 1.31 / 1.8
Cosco 1.55 / 2.0
The market condition in SGX is still fairly weathered, although we seen a drop of around 10% at the same time since the index hit a 14 mths high on mid April. This wave of bearishness were caused by panick selling as a result of the debt crisis in the Europe Region. Additionally, China's intention to increase their central bank's reserve ratio for the third time in 2010 only aggravates the whole situation. This coming monday we shall will see the policy being implemented and nonetheless there will be another wave of sell off in stocks.
However, do look out for stocks dumping to a 2010 low as such stocks will be consider a bargain.
Shipping and Engineering Stocks to look out for bargain hunting this coming week:
Current/Potential after July
Rotary 1.01 / 1.3
Ezra 1.93 / 2.3
Midas 0.97 / 1.1
NOL 1.97 / 2.4
Yangzijiang 1.31 / 1.8
Cosco 1.55 / 2.0
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