Breaking our investing ideas into few parts and stay focus on them is VERY challenging. I have my 5-year investing/trading education written by myself, for myself. The creation of this blog has changed it courses too. Similarly, I m seeing myself 'diverting' into something else ... sometimes it is beneficial(as I learned something NEW and EXCITING from it) but many of times it is a waste of TIME(= money) and efforts.
So, basically I m going to re-focus on my investment GOALS. Equity markets is only ONE of the vehicles I m seeing the huge potential go achieve part of my goal --- it is a stepping stone for me to learn the tricks and trades. That explain why I m less concern if I gain/loss(as long as I still maintain my capitals!). It is the education that will benefit me in longer run. Most in markets are known to be 'short term' trading mind. I fully agreed. Sometimes I could hv forgotten that I m only temporarily playing with it for the sake of experiences(and the profits are bonuses).
What I need to do at the moment is to RE-FOCUS and RE-STRUCTURE my plans so that it remains relevent, sustainable and practical. The learning process is certainly still VERY long, but I shall continue to read(to learn) ... discipline is what needed. Patience is virtue in investing.
Investing Idea : China and Gold
I read FP(http://www.financialpost.com/) that China's gold collections has been continuously increased. Yes, the threat of 'letting go of USD' is real and speculations about China's intentions should be carefully read(and digested). Being the 'supporter' of Jim Roger, I do see USD to depreciate, Gold to strengthen(in the name of safe-haven?) and China to take over as economic-power!! Perhaps I m speaking in a view of being a Chinese myself(I m a Malaysian, actually BUT in our country, DISCRIMINATIONS is very much alive. Malaysia's GOV do not appreciate good-brains or logic. Lets not get into that!). Anyway, I will make sure that my kids will learn "Mandarin" one day as it will be increasingly important language internationally in near future.
Inflation is another issue that many countries need to address. I can't really understand of 'deflation' as we are so 'used to' inflation -- items becoming more expensive or the decrease in our purchasing power. Deflation is the total opposite of inflation? You mean things becoming cheaper and it is too cheap? Err ... as consumers, I wont mind getting cheaper oil, cheaper meals or cheaper whatever. It is unimaginable in Malaysia.
9.05 pm : Biz-China(astro 509) ... China's gold collections : 2001 = 500, 2003 = 600 and 2009 = 1054. China gold reserves is only 2.28% compared to US's of 31%. Yes, the news might give GOLD a little glitter but the current hike in the gold price could be contributed by the festival in India, the largest consumer of gold.
How about black gold? This is something I wish to be holding too. Due to my thin confidence on US-market or even the local, I prefer to look at HKSE. In mid-term(by next year or so), black gold will be in HIGH demand and the price might be shooting up above the 100 level again.
How do we actually link economic news with investing idea? Say we believe that the economic data will still remain BAD and the current rally is a BEAR-RALLY(nothing more than that ... BULL market in year of OX?), what should we INVEST in? Or should we be patiently wait for the 'right' time? It is difficult, if not impossible to time the market(bottom?) ... so, I will trade(with my limited funds and knowledge) KLSE ... while continue to read(and THINK) of what sector(and a particular listed stock) to invest in?
We followed closely the Davos meeting, the London meeting and currently the G7 meeting ... what the world leaders have to say and what is being done thus far, yet ... HOW could we actuallly related that to the STOCK that we want to invest in? Recession is a global phenomena at the moment(S.Korea recently escaped by a whisker) ... which sector do you think an INVESTOR should place their money?
Knowledge on such global economic news becoming part-n-parcel of my life for the past one year ... and I m still unclear about many things they mentioned in biz-news, especially the CNBC/Bloomberg. I dont know if it will help me in my investing but I do know I m interested to enhance my knowledge, for the sake of education ... MONEY is not the main motivator, Education is.