Has the equity markets gone ahead of the fundamental economy or is it just normalizing to the current and future state of the economy?

Let’s start with some basic premises; the equity market is always a forward looking, future predicting indicator of where the fundamental economy will be in the future. The question is; is it 3 months forward looking or 6 months forward looking? Globalism means that capital flow moves faster in an out of asset classes and amongst different countries, liquidity a… Continue

We started a forum on December 6th requesting our members and clients to discuss the subject matter, “Do you believe the Straits Times Index has more room to move downwards……”

On December 6th, the STI stood at 1,659 and unfortunately, fools’ monies chased the market pushing it to a high of 1,924 on January 5th as many retail investors were trying to fulfill the wish of a New Year’s rally.

As at today, the STI closed at 1,505, a whopping 21.8% drop from the January high. Does it have more room… Continue

When is a good time to start buying into equities again? I suppose that is a million dollar question nowadays.

The reality is that while equities are meant to be long-term investments, it is also important to respect time. Time is our friend and helps to smoothen out the volatilities in the marketplace. However, time can also be our enemy if we do not respect it and make strategic ‘ins and outs’ in the equity markets.

On average, if equity investors have stayed invested for the past 5 years, t… Continue

Gold………….is it the desired asset class to be in given the current mess in other asset classes? Should we be jumping from the frying pan into the fire?

Gold has been the ‘talk of the town’ that it is time to move cash into gold because it is a safe haven asset class, because it is liquid, because the price is moving upwards.

It is a known fact that gold is a safe haven asset class; however, it has also been the most boring asset class with prices staying ‘flat-line’ like the plains of the Sahar… Continue

Is it evolving into a socialistic country by default and defect rather than by design?

Let’s look at some of the simple truths about what has happened: -

1. Debt has been transferred from private to public coffers.
2. The world has shifted from a corporate to a sovereign view of debt.
3. Two asset bubbles have burst; the real estate bubble and the equity market bubble. The only other time in
the history of the U.S., that the same scenario happened was back in 1929……….The Great Depression!
4. T… Continue