"real money" is dictated by fiat money (gold price movement is dictated by fiat money that wish to buy it) and can be bought by fiat money...

So how "real" is real?

That why I keep on remind myself one simple theory.

Crowded trade is always wrong in investment,
in other word, when more and more people screaming to buy, and more crowd are joining the bandwagon, then often the investment highly will go wrong one.

This apply across various investment target.

That's why I do not like to see a lot of people say good thing about reit...
and it makes me worry when people are rushing to buy property... and thinking property price always go up one.

This post has been edited by cherroy: Jun 24 2013, 09:14 PM

The word, deleveraging.

When yield is getting higher, it makes no sense to borrow and invest.
No every investment made is done by own cash money.

A lot of investment can be done by leveraging.
For eg.
When one want to invest in equities, bonds or whatever that yielding 4-5%, investment banker can arrange margin/leverage facility for one, x million to invest.
The borrowed money carry interest of 2-3% (due QE effect), while the investment target yielding 5%, a carry trade, without need to bring out a single cent, and enjoy the difference.
A net 2% difference of 1 million means 20K without sweat, without need to fork out a single cent.
1 million for investment banker is peanut only.

So when yield is getting higher, the reverse happens.

Deleveraging and deflation in worth means money varnish in thin air, as same as the opposite of money created in thin air.

Yield is getting higher, so those extra cash can buy those higher yield asset.

Remember when a bond being sold down (that resulted yield getting higher), there is still a buyer and a seller.

Money is not always constant, aka if there is 1 million, then the 1 million must be somewhere.
It doesn't.

A simple scenario, if stock market plunging, resulted value become lesser, then where is the money goes?
It varnish.
Nobody is winner, everyone losing money. So 100 million worth become 50 million, where is the 50 million, gone with thin air.

While in bullish market, everyone is making money, who is loser?
No one.
Money become more and more.

Stock market is never a zero sum game.
Only futures market is.

This post has been edited by cherroy: Jun 24 2013, 09:50 PM

I try to search for it when Axreit was 4.00 just last Thursday (because yield too low), but surprisingly (may be talked too much of destroy sell button ), I do not know where is the sell button on the online platform, too long no use already. (screen view problem, page setting)
When I found it, market close already.

So no sell button still intact...

Actually, I am a bit worry on the property market situation and too many people too bullish on property as well as high household debt level.

Sukuk 1Malaysia just mature last Friday...

So should be got few fresh hundred million out there.

China QE?

Now breakthrough 1900...

I wonder unit fund managers on those China related unit trust, what is their strategy now, continue to invest?

Long long way to go,

Stock market worldwide generally rise more than 30~50% for the last few years, so need to wait a little bit longer to be back to the cheap cheap price.

Btw, Bkawan back to its price last week.
No dirt cheap price despite being sold off near to limit down last week.

DCA can mean loss even more...if the market continue to go down.

So DCA is not a foolproof method, despite many promote this idea, especially some agents selling unit trust like to sweet talk about DCA.

So far, I only know DCA is definitely good for agents... to have steady commission throughout?

Roller coaster season...

You need to make arrangement with investment banks, aka borrow shares from investment before can short sell.

It is called regulated short selling, only certain stock can be shorted that are listed in RSS.

You cannot simply short sell without any arranged borrowed shares from investment banks.

Data better, faster the QE tapering...