In my previous post on global equity performance, the median on the average is (slightly above) a loss of 20% with the best performer Indonesia at -0.7% and the weakest performer Greece at -50.31%.
As for my (Asset Under Management) AUM for Year 2011, the median is -2.32% with the best performer at 3.85% and the weakest performer at -12.35%. 67% of investors had less than 3% of losses.
As everyone probably knows, the higher the risk, the higher the returns and if we want higher returns, we need to take higher risk!
During the 1st half of 2011, we were able to eke a positive return of 2 to 3%. As I posted the fall of financial markets in Q3, we manage to shelter from the bearish market and cushion the fall to a loss of 5%. Taking DCA positions commencing Q4 minimize the loss and hence -2.32%.
Through a combination of fundamental, technical and understanding global market sentiment, pro-active and reactive management was exercised. We allowed gains to run. Similarly, we cut losses at technical support levels thus avoiding huge losses. In recognition of bear traps, we avoided a majority during the 3rd quarter.
How do we see the market from here onwards?
You would probably know,
· the US economy had been having better than average economic data. The stock market still holds good/well above 12,300 with a range to 12,800.
· The Europe sovereign issue is less of a threat, despite S&P downgrades of several European countries including France and well as the EFSF. Bond auctions have been impressive!
· China’s GDP elevated Global markets sentiment earlier this week.
· Global MPM supports growth rather than combating inflation.
· Manufacturing data has improved.
To expect the unexpected
· Future credit rating downgrades
· Orderly/disorderly Greece default
· Noises coming from China and Europe.
May I take this opportunity to wish all celebrating the Lunar New Year
KONG XI FA CAI
AND May the Year of the Water Dragon bring lots of water, good health and prosperity to one at all
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