Sunday, August 14, 2011

Investment Strategy

Blogging this to make a mark on my thoughts and the formation of investment strategy that's in my head.

Matthias Chang is forever the perma-bear, predicting gloom&doom to some somewhat correct predictions but wrong in timing and Dali is almost always long on the market making persuasive analysis on the market overall. I have learnt a lot from both but they are not perfect.

After the Greece debacle which require a second tranche of 110 euro to bailout again. This was soon followed by Spain and Italy where their bonds hold more than 6% of interests. USA did not solve their debt limit problem until the last hour and raised it by a high 2.5 trillion with no view of increased taxes. Then S&P downgraded USA's credit rating to AA+. The market absolutely could not take it anymore and tanked.

In Malaysia, the effects were less and only about 100 points were lost, but a rebound has pushed up 50 points back now. It's hovering at around 1500 now. Meanwhile, Gold exploded to the upside from $1650 to $1810 and then sliding towards $1740. I made a huge exit from Gold at $1750 and somewhat regretted it. I could have made a bigger killing.

It's mid August now and I think Gold will move down below $1700 where I should then be making an entry again. I'm also itching to enter Equities again and Mr. Koon Yew Yin has recommended Plantation sector which the basis of growth in potential earnings concept really intrigued me. I'm planning to enter Hap Seng Plantations as soon as my CDS account is ready. As always, I'm wondering what I should do with Century Logistics. It's a very cheap stock of PE ratio of around 4x and a higher NTA than it's current stock price. But this counter is not moving. Growth in earnings can be seen. Or could it be that their policy of 20-25% dividend payout of net profit is too low? I wonder what do they use their 70% profit for? More expansion?

In any case, I'm happy to make 10% from my Gold this month and my war chest would be doubled by end of this month. Hope I have learned well and will strategise better moving forward.

I'll be posting an update in the very near future. *Crosses Fingers*