WB is what some people call a "mover and shaker" . meaning many investors and funds are watching , and likely following , his every move. he is able to set trends in motion.

u were still sperm and ovum 40 years ago. whats your point  ?

Ha incidentally that is why we are not in local markets much, it's too easy to move. I feel for the people who are caught at the wrong end when a Rm50K buy spikes the price (not to mention this increases short-term volatility and is not something a responsible investor should be doing.)

Can you imagine USD10K affecting the US market?

But having said the above, if Ms Yellen is going to wait for the whole world to fall in place first before she hikes,.... lol,.. the day of hiking will never come.

this is what some critics said. there will never be a day when everything is green to go!

still, who is to argue with one of the most powerful forces on the planet?
likely markets are now pricing in 100% of a rate hike late 2015 or early 2016.

can see the $ strengthening against other currencies again today.

if it is so predictable, everyone will be rich.
but what is impt is not to ignore some compelling facts.

e.g. china is slowing and will not pick up fast so soon; commodities prices will stay low for some years.

and... rm will likely stay low since there is really nothing major to help it strengthen significantly.

If it's random then people like Warren Buffett would not exist. People used to believe in Random Walk Theory until he proved them wrong.

I agree. The only way to win if the mkt can hop up and down within short timeframes is by buying both sides of the spot (I contemplated this strategy once in the FKLI Vroom thread).

The problem is how short do we NEED the short timeframes to be for us to win. And that translates into whether the mkt will meet that required timeframe for us to win,... Hard to play-lar,...

I guess that is your problem. My problem is how to invest in good companies at good prices without being irresponsible. It seems if you want to support good companies at good prices these days, you have to either kill small investors with short-term volatility, or become a traitor to your own country by investing outside of it.

I guess that is your problem. My problem is how to invest in good companies at good prices without being irresponsible. It seems if you want to support good companies at good prices these days, you have to either kill small investors with short-term volatility, or become a traitor to your own country by investing outside of it.

Irresponsible ?
Support good companies ?
Kill small investors ?
Traitor to your own country ?

   

Hey, you think too much and became confused with your objective in investing - making money

Your are out of topic. Please open another thread to talk about your objective in investing

Wodenus needs to open a thread about Patriotism. 

Title - Investing patriotically and your responsibility to good companies and small investors

'QUOTE(cherroy @ Sep 18 2015, 08:19 AM)

'I wish it was that simple. Interest rate increase --> then this happen, interest rate decrease --> then this happen.

Interest rate increase, by convention, stock market should come down. Yesterday interest rate no increase, stock market should celebrate and rise. But DJ come down.

Unpredictable'

There is something called "baked in" the news already.

Financial market doesn't wait something to react.
It reacts way before hand.
Buy and rumour, sell on news.

DJ did spike up a lot when the news of no rate increase broke out, but soon profit taking sent it back down.

May be investors think deeper, wait, Fed no increase rate because economy not so strong, hence take a wary stand.
Just like as you have mentioned, sometimes thing is not as simple yes and no.

Rate increase - stock market should come down, but why rate can increase, because economy good and inflation, but economy good, stock market should go up as corporate earning will be good.
Rate decrease - stock market should go up, but why central bank decrease rate? because economy no good. Economy no good, corporate earning would be poor, stock should go down.

That's why analyst always have endless story to tell and reports to write, which can be a high pay lucrative job.  tongue.gif '

I would think the US mkt reaction to the no-hike decision can be explained this way : as the odds against the hike increase as we move towards to day of decision, the mkt rose because the mkts are forward-looking towards the rate hike decision.

Then the mkt is right : no hike. As you said, the Dow spiked a little bit more.

Subsequently, after the rate hike decision uncertainty has been put aside, the MKT TURNS to the next fundamental factor, could be oil and China. Since both oil and China still do not look very promising moving forward, the mkts moved downwards.

Bloomberg Caroline Hyde in London has just mentioned that the US mkts are down now because of sentiments going back to China,... and safe haven instruments are gaining again.

china is surely the wild card. all is still not so well there, unsettling.

now that usa did not raise rate, watch out for potentially further rmb devaluation.

japan was about to welcome a us rate hike to improve yen competitiveness but it did not happen.

hence nikkei dived 2% today.

Congrats . I unfortunatefully didn't manage to diversified, just like what dreamer said, put everything in the same basket. But luckily I can still live with 2% of my networth as my yearly expenses with negligible debts(4%). Was thinking about investing in s-reits few years ago when I started following a Sporean's blog http://singaporeanstocksinvestor.blogspot.sg/, at which time exch-rate @rm2.50.

Say if I had invested rm250k(SGD100k) in S-reit(instead of ASx) 3 years ago,  would my present value in S-reit > SGD100k (rm300k)? My present value of the ASx is roughly rm250k+21%=rm302k.

Based on the chart below, FTSE ST Real Estate Investment Trusts Index SIN: XX:FSTAS8670 was about the same level 3 years ago compare to now.~700. Does the chart includes dividend?

Hi MGM,.. about the chart, if you say that the level is the same between today and three years ago, then I would say that dividend has not been factored in.

For the REITs in my portfolio, I can tell for certain that the yield has been, on the average, at least 4% per year for the last THREE years, using your frame of time reference. I checked my updated spreadsheet a moment ago, the yield is at 7.98%.

My unrealized capital gain is now at 38%. Let's take a quarter of that, hence at 9.5%, since we are going to use the last three years as the time reference.

So, totalling up the above : 4% + 9.5% = 13% gain.

Had you invested SGD100K into SGREITs three years ago, then : SGD100K + 13% gain = SGD113000 sitting in Singapore now.

If you liquidate and realize your profits by selling-off everything and converting back into the RM, bringing back to Msia to invest more into the ASX, you would have : SGD113000 x 2.98 (conservative exchange rate) = MYR336740 dropping into your bank account.

You would have profited by : MYR336740 - MYR250000 = MYR86740.[SIZE=7]

I have taken very, very conservative figures in my calculation. The profit figure derived above should be higher !

The snag here is : the above calculation is based on my portfolio of REITs and some Dividend Stocks. Not across the board of REITs.