Oil-Gold Ratio: Dial Down Deflation Concerns

Comparing the relative value of two high profile commodities can often reveal interesting insights.

Our analysis of the oil-gold relative price suggests that worries of deflation may be overdone and confirms our view that the oil price collapse may be more reflective of the production boom than consumption trends.

In recent months, the exchange rate between gold and oil has experienced a very strong move, bringing the oil-gold ratio (the number of barrels of oil needed to purchase one ounce of gold) to near record highs (Figure 1). Since June, the number of barrels of WTI required to purchase one ounce of gold has more than doubled from 12.5 to 28 as oil prices plunged in dollar terms, while gold prices held relatively steady (Figure 2). During the past 30 years, the oil-gold ratio has averaged about 16 barrels of oil for one ounce of gold. That said, the oil-gold ratio is not yet at historical extremes: it achieved 28.25 in February 2009 and rose to over 30 during the 1985-86 slump in oil prices. While this recent run-up in the oil-gold ratio has been driven by the drop in the oil price, it is interesting to examine these two commodities together to appreciate what they may be telling us about the future of the global economy.

More: http://www.cmegroup.com/education/featured...e-dynamics.html

Who is holding KGF:

Kenanga Growth Fund | 0.9767 | -0.0287

This post has been edited by David83: Aug 12 2015, 07:48 PM

Time to buy some

Aladdin fund breaches 1.4000 level at all time high yesterday with NAV @ 1.4046

Equities Weekly: Equities Broadly Higher As MYR Depreciated [7 Aug 15]

Global equity markets were higher over the week ended 7 August 2015 as MYR depreciated -1.80% against USD (All returns were higher after converted back into MYR). MSCI AC World Index, a broad measure of equity-market performance throughout the world was up by 1.83% over the week. US equities, as represented by the S&P 500 Index, up 1.69% after nonfarm payrolls rose in July. The Japanese and European equity markets fared better, as they gained 3.45% and 2.75% respectively over the week.

Emerging equity markets turned in a mixed performance over the week, with the MSCI Emerging Markets Index increasing 1.08%. The Brazilian and Russian equity market on the other hand saw a decline, with the respective Bovespa and RTSI$ index falling by -4.23% and -0.18% respectively. India was one of the brightest spot among the emerging economies, as the SENSEX Index gained 3.81% over the week. Asian equity markets were also broadly higher, with the MSCI Asia ex Japan Index gaining 1.72%. Hong Kong, as represented by the Hang Seng Index, rose 2.64% while Taiwan and Korea saw their respective equity markets increase by 0.27% and 1.64% respectively. China, as represented by the HSML 100 Index, gained 2.86% on hopes of new stimulus measures by the government. The local Chinese equity markets also rallied strongly, with the Shanghai Composite Index gaining 5.22% and the Shenzhen CSI 300 Index up by 5.39%. Over in Southeast Asia, the Singapore equity markets lost -2.35% while the Malaysia, Thailand and Indonesia equity market up 1.66%, 1.13% and 2.09% respectively.

Economic Calendar: Investors will be keeping an eye on a swathe of economic data from China that will be released this week, including industrial production, retail sales and inflation data, for clues on where the economy is headed in the coming months. South Korea's central bank also convenes for their monetary policy meeting this week, and is likely to keep its interest rates unchanged. Elsewhere in Europe this week, preliminary Q2 GDP data from Germany, Italy and France will help to gauge Eurozone's recovery after industrial output data disappointed.

URL: http://www.fundsupermart.com.my/main/resea...?articleNo=6164

CIMB GTF hits all time @ 0.8704

It's going to be a wholesale fund: Wholesale (Feeder) / Growth

This one reliable?

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Foreign funds net sellers at RM1.47b in week ended Aug 14

KUALA LUMPUR: Foreign funds stepped their selling pressure on Malaysian equities in the week ended Aug 14 where the ringgit hit past 1998 lows with net selling surging to RM1.47bil.

URL: http://www.thestar.com.my/Business/Busines...g-14/?style=biz

New Funds Announcement

Fundsupermart.com is pleased to announce that 7 new funds from Affin Hwang Asset Management Berhad, Amanah Mutual Berhad, Kenanga Investors Berhad, and UOB Asset Management (Malaysia) Berhad are now available on our platform.

According to the Guidelines on Wholesale Funds issued by the Securities Commission Malaysia (SC), only a "qualified" investor may invest in a wholesale fund.

As of 17 August 2015, we have 277 funds from 25 fund houses and 39 PRS funds from 7 PRS providers on our platform.

URL: http://www.fundsupermart.com.my/main/resea...?articleNo=6177

Will RMB Continues To Devaluate?

KEY POINTS:

1. The new RMB fixing mechanism represents an important move, incorporating the “market supply and demand” element to lead the RMB back to a reasonable level
2. The RMB exchange rate has become more flexible, which is positive for long-term economic growth and should promote more efficient resource allocation.
3. The impact of the new currency fixing mechanism on the China market is limited; sectors with high external debts such as property and airlines constitute only approximately 5% of the HSML100 Index’s 2015’s expected earnings.
4. For the upcoming 1-year period, we expect RMB to depreciate gradually towards RMB 6.6 per US Dollar, under the government’s prudent policy guidance.

URL: http://www.fundsupermart.com.my/main/resea...?articleNo=6178

CIMB GTF inches higher to another all time high @ 0.8848

Finally my RHB-OSK China-India Dynamic Growth Fund is GREEN.

ROI at 1.2%

Aladdin fund also hit new high @ 1.4187

CIMB GTF inches higher @ 0.8885

SSE Comp drops 6.15%

Aladdin fund also inches higher to 1.4258

Ringgit, KLCI continue to fall

Local bourse down 24 points while ringgit closes at 4.099 to US$

PETALING JAYA: The FTSE Bursa Malaysia KL Composite Index (FBM KLCI) has come under pressure as the ringgit slipped further, dragging the FBM KLCI down as much as 10.71% year-to-date.

The FBM KLCI closed down 24.28 points to 1,572.54, with the ringgit closing at 4.099 against the greenback.

URL: http://www.thestar.com.my/Business/Busines...fall/?style=biz

Sometime reading news online from The Star portal is troublesome.

Due to caching, news could be messed up.

US market closed RED.