I will top up HSAQ and HSAO next week before promotion ends. My target is to reach 1:1. Currently is 3:2

Dear Sifu's

I am not from finance background so still struggling to understand all the financial term and analogy.

Correct me if i am wrong, base on my observation with current economy(without referring to any data or analysis) :

1. Global economy is recovering slowly and is moving toward a more stable and mature growth. Tightening or pull back might hurt short term economy but it will avoid the credit crunch / financial crisis like 2008.

2. Economy will continue to grow because everyone want to live better .As long as the unemployment rate can be lower down, it will continue to drive growth.

3. After recent sell down in South East Asia, investors are coming back again . I feel the confident level is there.

4. China is recovering however i believe there will be more tightening measure in future.

5. Developed country are recovering also and they learnt their mistake on the past. Thus they are more careful in their policy and enforcement.

6. Bond no longer able to stabilize our portfolio . This same goes to gold also.

I plan to put my best on to Malaysia, South East Asia and US / Europe. However my favourite EI global leader is not in the recommended list..

no top up US meh?
FSM recommended portfolio heavy on US lor.

some "noise" on US economy....
"who is driving the housing recovery?"
http://edition.cnn.com/2013/07/19/opinion/...html?hpt=hp_bn1

Just like in Malaysia...who is the one driving the house price going up like rocket..haha

1. China is definitely slowing down and won't grow as fast as last decade with double digit growth in GDP. China is on its multi-year efforts on reforming its economy structure to become domestic driven and to resolve shadow banking and local government debt issue. They can afford to slow down till 6.5% of GDP (the point of hard landing)

2. Europe or Eurozone won't be out from the sovereign debt mess so fast. Therefore, they won't recover that fast and that much. The stock market is doing pretty well recently is not because of the domestic (Eurozone) economy is doing well. It is mainly contributed by earnings from MNCs which most of their revenues come from Asia particularly China.

3. Japan is printing money till they hit 2% of inflation target and tried to suppress strong. This may take longer period than expected.

4. US is definitely on track of recovery. Recent economic data is pointing to good figures and that's why Bernanke can afford that to stay of chance of tapering QE3. This will bring 10-year US bond back to the level pre-QE2. Outflow of fund from emerging market hit their currencies and USD is getting stronger.

5. Asia ex Japan and particular ASEAN has attractive valuation due to the recent correction. That also includes China and Hong Kong but China gain needs to spread longer as they have a lot of reform to take place.

Disclaimer: Above points are quoted from today's seminar. I don't take any credits from them and I tried my best to recover what I remembered.

Buffett said US economy will be a good stage if "When the U.S. gets back up to a million housing starts a month, Buffett says the unemployment rate will fall below 7%."

URL: http://www.forbes.com/sites/investor/2011/...ey-to-recovery/

Sharing is caring.. Thanks for the fruitful messages conveyed

1. We not sure what really happen in China . A lot of issues hasn't surface yet. Economy slow down doesn't mean the demand reduced but is just not expand as much ( in percentage) as before ..Correct me if i am wrong..

2. Is this a signal for us to invest in large cap in europe?

3. Japan is like in its own world now. But personally i do hope they will recover so every other country will benefit from it.

4. What is your opinion on the QE pull back? I think by the time investor wont have rapid sell down like what happen last 2 months.

5. When i check the market PE release by Fundsupermart, A few South East Asia ( Malaysia, Indonesia, Thailand and etc) current PE already exceed the Fair PE.. but the fund performance is recovering from recent sell down..I also dont know how to understand the message lying behind.

nice observation about the mkt PE,....but bear in mind that the MKT PE are normally obtained from the valuation of the index linked stocks.....ex KLCI consisted of about 30 stocks,
where else, the funds that you bought may consist of the stocks NOT from the index stocks.....so the MKT PE may not apply...

read this then....European Equities: Buying Companies Not Indices (Jul 2013)

http://www.fundsupermart.com/main/research...?articleNo=8469

i feel i found the key...haha thanks for your enlightening . So really hard to follow data that really tells the story..hmm

That's why OSK-UOB speaker is promoting small cap locally and regionally:

OSK-UOB SCOUT
OSK-UOB EOUT.

May i know what is the different between both of this ? (Want fast answer in the Mid Night)

goto FSM fund selector look for
OSK-UOB SCOUT.........OSK-UOB Small Cap opportunity unit trust
OSK-UOB EOUT..........OSK-UOB emerging opportunity unit trust

OSK-UOB SCOUT is mainly Malaysia focus with small cap companies of market capitalization up to RM 750 million.

http://www.fundsupermart.com.my/main/fundi...number=MYOSKSCO

OSK-UOB ECOT has regional focus (uo to 30%) with small cap companies of market capitalization up to RM 1.5 billion

http://www.fundsupermart.com.my/main/fundi...umber=MYOSKEOUT

This post has been edited by David83: Jul 21 2013, 12:40 AM

Noted with thanks!

Why 1:1 if I may ask? My ratio of HSAO and HSAQ is 1:1 and I'm planning to make it 2:1 actually.

Is it advisable to split my later investment on HSAO between that and HSAQ so that I maintain 1:1?

1:1 is just convenient to monitor and review

If u risk-averse, better HSAO 2:1 HSAQ
If u adventurous, can HSAO 1:2 HSAO

Do bear in mind, what HSAQ can buy, HSAO also can buy
But HSAQ cannot buy everything that HSAO can buy

So, IMHO, better to keep 1:1, there may be times when even HSAO might even go put significant % in small-mid caps.

I also got Cimb Apac dynamic income which is Asia ex Japan. Overal Asia ex Japan my small mid cap percentage will be less than 33%

CIMB APDIF is mainly investing based on stock selection but I guess they'll focus on large cap more.