Comments on: Future Chinese Stock Market Problems are being Created Now by its Banking Industry
http://www.theundergroundinvestor.com/2007/05/16/a-look-no-further-than-the-banking-industry-for-your-answers/
The definitive investment blog for investment news not discussed in the mainstream mediaThu, 08 Jan 2009 12:04:54 +0000http://wordpress.org/?v=2.7hourly1By: J.S.
http://www.theundergroundinvestor.com/2007/05/16/a-look-no-further-than-the-banking-industry-for-your-answers/comment-page-1/#comment-6279
J.S.Sun, 20 May 2007 06:47:17 +0000http://www.theundergroundinvestor.com/2007/05/16/a-look-no-further-than-the-banking-industry-for-your-answers/#comment-6279Yes, valuation is a concern for me as well as you said across the board. I sold out of stocks in the South Korean, Singaporean, Brazilian, and Australian markets a couple of months ago locking in profits and yet I could have made more by staying in. Irrationality can last a long time and even as I've called for a correction in the U.S. markets, my timing has been a little off as they continue to push higher. However, since my strategy a couple of months ago had involved holding inverse funds on the S&P 500 versus put options, this has hardly hurt me at all. I'm not a big fan of holding cash as usually there are opportunities somewhere in the world to invest in undervalued markets but this time around, almost all markets like the ones I mentioned seem overbought. In cases like this, my strategy switches to seeking underbought ignored asset classes and even in the U.S. markets I believe some exist that still provide low risk high reward opportunities. But yes as you know, I am a big proponent of gold stocks and have been for quite some time even through the corrections we've been having. In the end, fiat currency, even Euros are just paper backed by nothing. The U.S. dollar is backed by the military but how long can that scenario hold up?
J.S.Yes, valuation is a concern for me as well as you said across the board. I sold out of stocks in the South Korean, Singaporean, Brazilian, and Australian markets a couple of months ago locking in profits and yet I could have made more by staying in. Irrationality can last a long time and even as I’ve called for a correction in the U.S. markets, my timing has been a little off as they continue to push higher. However, since my strategy a couple of months ago had involved holding inverse funds on the S&P 500 versus put options, this has hardly hurt me at all. I’m not a big fan of holding cash as usually there are opportunities somewhere in the world to invest in undervalued markets but this time around, almost all markets like the ones I mentioned seem overbought. In cases like this, my strategy switches to seeking underbought ignored asset classes and even in the U.S. markets I believe some exist that still provide low risk high reward opportunities. But yes as you know, I am a big proponent of gold stocks and have been for quite some time even through the corrections we’ve been having. In the end, fiat currency, even Euros are just paper backed by nothing. The U.S. dollar is backed by the military but how long can that scenario hold up?
J.S.
]]>By: Contrarian
http://www.theundergroundinvestor.com/2007/05/16/a-look-no-further-than-the-banking-industry-for-your-answers/comment-page-1/#comment-6214
ContrarianFri, 18 May 2007 18:08:11 +0000http://www.theundergroundinvestor.com/2007/05/16/a-look-no-further-than-the-banking-industry-for-your-answers/#comment-6214Valuations are a serious concern for me across the entire Shanghai equity market. Moreover, I'm concerned about the global picture. I'm still holding some Korean and Australian large caps, but I've been slowly moving my positions to cash. This summer will likely leave my portfolio entirely composed of cash, gold, and gold stocks.Valuations are a serious concern for me across the entire Shanghai equity market. Moreover, I’m concerned about the global picture. I’m still holding some Korean and Australian large caps, but I’ve been slowly moving my positions to cash. This summer will likely leave my portfolio entirely composed of cash, gold, and gold stocks.
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