Archive for May, 2009
Fools rush in, or the early birds catches the worm?
Posted by: admin in General, Unit Trust on May 12th, 2009
To quote an article by IFast in Fundsupermart.com,
“However, we have recently seen a change in sentiment and increasing investor risk appetite, and this has benefited most equity funds and even higher-risk fixed income funds.”
There’s certainly a hint of optimism among the investors out there. Being a forward looking individual like myself, the storm will eventually subside as they always do. Unless you’re talking about the end of the world that is..
Is it still safe to be in “safe” funds now?
Posted by: admin in Unit Trust on May 11th, 2009
Have you realized that the Bond Funds prices has been consistently dropping lately?
The Insider understands that Equity and Bonds generally in opposite directions to each other, like a magnet’s South pole and a North pole. The big difference is that the Equity fund is a bigger “magnet” then the Bond fund.
So we see how the Equities, a.k.a. the Stocks, have a BIG influence in how the Bond funds would react.
I took a couple of Bond Funds to compare against a popular Equity Fund, the DWS China Equity Fund in the past 6 months. Do you see the “magnetism” between them?
bonds movement against the equity fund
I don’t think anyone would like to be invested on a fund that is dropping, but channelling 20% of your investment into an Equity Fd for a small start could be rewarding in the long run.
How will the H1N1 virus affect the global market
Posted by: admin in General, Unit Trust on May 4th, 2009
Just when the world market looking set to recover, the H1N1 crisis is causing concern around the world. It is still early to say how it would turn out, but a good indicator of how it would affect the market is to look back at how the world deals with SARS and other past pandemics, as highlighted in the report by the author of AMP Capital Investors. Click on the image to see the report.
SARS in 2003
Here’s the short of it:
- There might be short term volatility
- Unlikely to be a major impact on the share market
- SARS didn’t really eventuate, economic impact was modest although it caused some volatity in the market
What should you do now?
MohdKhair.com feels that it may not be a good idea to get aggressive on your investment now, but being 100% in conservative funds may cause you to lose out on strong gains when global market eventually recovers. It usually comes quicker than we can react.