Posts Tagged ‘recession’
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.
Why do we see stocks picking up while RECESSION is still all over the news?
Posted by: admin in General, Unit Trust on April 27th, 2009
Why does the stocks sky-dived when the economy was going strong, and why lately does it seems to defy gravity when it’s still doom and gloom in the economy?
An Insider understands that stocks movement is the first indicator of the direction of economy. In the process, it also dictates the fall of the property market as we are experiencing right now.
Stocks trend first indicator of the economy (source).
Unit trust investors have seen an average spike of 30% return back then when the world recovers from the Asian Financial crisis. Though no-one truly knows when will be the start of the recovery until it is too late, we have seen a sustained growth over 6-8 months after the Asian Financial Crisis was over.
Question is, will you be one of them who will catch the wave?