I shall be taking over the blogs here for this week or so to relieve our mentor Ray Barros who has to attend to some personal matters DownUnder among his other commitments in HK.
As I just came away from a financial event, I thought it would be appropriate to share my thoughts hereunder.
Cross ref:
http://anatrader07.wordpress.com/2010/09/21/food-for-thoughts/
Just home from an evening at the Fullerton Hotel, with good wine, good food and good company. It is the usual investment presentations making the rounds at this time of the year.
What I heard tonight at the Coutts presentation reminds me of trading in the markets. Whether we trade stocks, commodities, currencies or real estate, it is important that we understand the marketplace. We need to know the fundamental health of the economy, local as well as global, as markets are inter-related in this day and age.
There was talk tonight of whether there will be a Double-Dip. In the view of their analyst, he thinks it is unlikely, just as we read or hear in the media that it is unlikely. However, we are aware the US economy is losing its power to the Chinese economy and one of the grouses against China is the artificial weakness of the Yuan against other global currencies, especially the USD.
As for the British Pound and Euro, the outlook is just as precarious. For Euroland, only the German economy is strong but how will
Euro fare ? Buying properties in UK may be attractive to foreigners but is the local real estate market really in good shape? These are some questions we need to consider because it involves foreign exchange play in currencies.
Even if there is no Double-Dip, the economic picture is still gloomy for the world in general and Depression could set in.
For myself, I will stand aside and buy nothing, perhaps a little selling for some currencies when the zones are there to get ready to sell.
My head is still reeling from the red wine and good food.
Good night.
Idkit aka Ana
Ag Moderator
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