Idea Of The Week: Golden Lessons From The Gold Plunge [26 Apr 2013]

Gold has taken a battering recently, with the spot gold price falling by almost 10% on a single-day on 15 April 2013. At Fundsupermart.com, we have been reiterating our cautious view towards this glittering metal. In the beginning of 2013, we warned investors to be ready for a correction in gold price, given the multi-year run-up on its demand. On the other hand, the famous gold bull Jim Rogers also advised investors last December to be cautious of a substantial correction in spot gold. "Most things correct 30 percent every year or two,” he shared in an interview, “even in big bull markets – a 30% correction is normal and gold has only done that once in the past 12 years.”

While the recent gold slump must be painstaking especially for those who have been investing in the so-called “safe haven”, it is nonetheless a hard-earned lesson for global investors to see for themselves just how dangerous a sentiment-based investment approach can be. In this Idea Of The Week article, we summarise the key takeaways from the recent gold plunge, along with our advice for successful investing.

URL: http://www.fundsupermart.com.my/main/resea...?articleNo=3389

Everything works through proxy and FSM is the proxy.

This fund is pretty unique. It invests in a sector that is er ... don't know how to describe.

Well, it's like AmPrecious Metal. They're investing in commodities and mining sector.

For this, they're investing in food and agriculture related sector.

Both are considered under commodity related and its pretty volatile IMHO.

On top of that, AMGLOBAL AGRIBUSINESS has been having downward trend since March 15, 2013.

Then, you cut the red ribbon first!

Don't want to touch gold now. It's melting.

Volatile is the key concern.

FSM comment: Fundamentals of supply and demand for gold do not favour gold price in the long-term.

Read the article from FSM that I posted previously:
http://www.fundsupermart.com.my/main/resea...?articleNo=3389

This post has been edited by David83: Apr 29 2013, 04:53 PM

Let's put it this way. If BNM doesn't adjust any OPR and SRR, then bond market will not be affected.

If inflation rate is still remained low and no accommodating monetary policy is needed, then bond market will not be affected.

If KLCI is going into correction or deep correction after GE13, then bond market may have an upward trend.

Lastly, if if I have a crystal ball, then we won't be sitting arguing and forecasting future trends.

This post has been edited by David83: Apr 29 2013, 04:52 PM

HAQF is good Asia Ex Japan fund. It may overlap a little with KGF as it has some exposure in Malaysian (up to 30%) but in the small to mid cap sector.

KGF is purely 100% Malaysia.

Transfer-In Your Holdings & Enjoy 2x The Rewards

Transfer-In Your Holdings & Enjoy 2x The Rewards May 2, 2013
FSM is offering 2x the rewards to investors who successfully transfer-in their unit trust holdings to Fundsupermart.com from 2 May 2013 till 28 June 2013 (promotion period).

URL: http://www.fundsupermart.com.my/main/resea...?articleNo=3404

ECB cut rate. Market will be likely on upward trend for near term.

But the rate cut was just yesterday. There's could be rally starting next week.

You can buy it after GE!

Anybody is eyeing anything from this promo?

Which fund are you trying to fish?

UT works differently compared to shares.

MYR strengthen causes offshore funds to drop?

AmAsia Pacific REIT dropped 1.3%
CIMB Principal Australian Equity dropped 1.6%
CIMB Principal Asia Pacific Dynamic Income dropped 1.1%
OSK EMB dropped 1.9%

This post has been edited by David83: May 7 2013, 06:32 PM

MYR still strength today 2.9825 per USD.

Quoted from xe.com

I'm aiming for AXIATA.

OT for a while

When equity is doing well, bond shouldn't doing good together. General trend movement between equity and bond.