As we expected, the very last leg up of stock market is happening now. I expect this should be the top for stock market in 2009. Take 100% of your profit and relax yourself.
Today i wanna talk about some useless and misleading cliche (saying/idea/expression) of investing and trading. I hear it all the time from investors and traders. We all think these cliches are true but it's absolutely garbage.
1. High Risk High Return.
This cliche is probably the most famous among amateur traders and investors. It is so widely used by everyone and everyone thinks it's the truth. It leads people to believe in order to achieve reasonable high return, you need to take unreasonable level of risk. Besides that, it also encourage people to take risk without understand risk and ability to manage risk. So many people will ignore the high risk of a financial asset thinking they will get higher profit by investing in high risk financial products.
Yes, I admit, it is easier to get higher profit by investing in high risk assets. However it does not mean we can't reduce the risk involved. By understanding and with ability to manage risk, we can significantly reduce risk of risky financial assets such as derivative, option or foreign currency exchange. In other word, although we are investing in risky assets, by managing it, we can make it into a medium risk investment but able to generate handsome profit with it. So now it will become, reasonable risk, high profit.
How to reduce and manage risk? I have wrote some article able predicting stock market movement and you can check it.
2. Buy Low, Sell High.
This is also a popular saying in investing. Everybody knows we need to buy low and sell at high price to get profit.
However not many people can tell what is low price and what is high price. Most amateur investors and traders use historical market price as a measurement of price level.
Example: Microsoft (MSFT) was traded at around 55 (peaked at 58.80 at 24 Dec 1999) during the dot-com bubble. After the bubble burst, MSFT dropped straight to around 40 level which is around 32% drop. Many amateur investors, using the cliche of buy low and sell high, think 40 is low based on previous market price. They bought it at 35-40 level and stuck with it ever since. Even at the peak of 2007, MSFT still did not make it back to that level.
So the correct cliche should be buy at some level, sell at higher level.
To determine what is the good entry exit level, never use historical or current market price as indicator. You should use the fundamental and technical analysis tools to help you.Check my previous blog article for it.
Another mistake that amateur investors and traders always make it only decide where to enter but rarely decide where to exit. They usually spend huge amount of time deciding the reasonable entry level but seldom put any effort in planning the exit strategy. They rarely think about the profit taking level, cut loss level, collecting level, all in level and so on. So they will easily panic when something unexpected happen and make silly mistake.
Remember this, exit level is much more important than entry level as exit level will determine either you make profit or loss. Even if you enter the market at perfect moment does not guarantee you a profit, rather exit the market at perfect moment usually guarantee handsome profit.
3. Buy The Rumors, Sell The News
This is another popular cliche that i disagree on. It encourage people to invest based on rumors without consider facts behind it. It mislead people to make silly investment without knowing much info behind it.
I admit sometime, in short term trading, you may get lucky by investing according to this cliche. However i consider that as gambling and not investing. Rumors mean something that is not confirm and has no definite answer.
In other word, invest or trade based on rumors is exactly like gambling. It has a 50% chance of being right and 50% chance of bust. So you are investing based on 50-50 chance of getting profit and there is no chance of managing risk involved. If that's not gambling, i don't know what is.
Another funny part of this cliche is why you need to sell at news? If we got a good news about something, why should we abandon it? We should buy more on it.
Example i own a HK listed company call Enviro Energy (8182, HK). Few months ago it announced that it found some new oil field in Mainland China. That's a positive news. Why should anybody sell the share of this company based on that good news?
4. Stock Always Goes Up.
This is one of the funniest cliche i think i will ever heard. Many people say stock always goes up. Is that true?
NO. Bullish market mainly based on rising inflation. Inflation will always lift the price of everything higher including financial assets. Besides stock, food and commodity price will goes up as well.
Inflation happen mainly based on money supply. Higher the rise in money supply, higher the rise in inflation. That mean more money in economy, higher the inflation will be.
So to sum it up, stock goes up because of rising money supply. Is money supply always rising?
NO. Some countries experience negative growth in money supply such as Japan. As a result, the Nikkei 225 index drop from 40,000 in 1990 to 10,000 now.
However, rising stock market does not necessary a good thing. Rapid rise in money supply may result in bubble and hyperinflation. Look at Zimbabwe. Zimbabwe stock market did rise more than 700% from 2003 to 2007, but their inflation rate rises by 13.2 billion percent a month. That mean Zimbabwe is experiencing 516 quintillion percent annual inflation (516, 000, 000, 000, 000, 000, 000, 000% a year)
So still think rising stock market caused by rising money supply is good? think again.
That's all for today. Next time I will introduce more silly investment cliche.
25.9.09
Obama = Worst US Presiden Ever?
Stock Market is heading lower! It may not happen today or tomorrow as it may still have a leg up but nevertheless, it will heading lower this coming Oct or Nov so brace yourself for a bad Christmas.
Anyway my focus today is not about the market but about President Obama. I am sure he is one of the most influential US president ever domestically or outside the USA. The world loved him last year and congratulated him for winning the presidential election. He promise "Change" and "Change that we can believe in." However what has he done so far compare to what he promised to do last year?
His biggest promises are improve the economy and US foreign policy. From the first sight look like he is doing quite well but if you look carefully, he is climbing the ladder of the worst US president of all time.
First of all let's talk about US foreign policy. Obama promised us before the election that he will bring back US troops, close Guantanamo and give Iraq and Afghanistan freedom. The world loved the idea and praised Obama for these promise.
However what did Obama do since winning the election?
Afghanistan was having their election, but the election is rigged and corrupted. Hamid Karzai won simply because of graft and force and not support from Afghan.
Iraq is going nowhere near democracy. There are more suicide bombing in Iraq in the past 12 months than the history of Iraq history.
Furthermore instead of bringing back US troops, Obama is actually adding more troops in that 2 countries. The total troops in Iraq alone is rising to 130,000 from 115,000. FYI, all other nation have withdrawn their troops except for USA. That's not all, USA has spent more than 2 trillion US dollar since invading Iraq in 2003. How about the condition of US troops in Iraq? Here are the fact:
All these may not caused by Obama but he is certainly responsible for some of it as he still refuse to bring back the troops.
Now, Guantanamo Bay. Why is this torture chamber still standing on earth. I am sure all of us have information about this place and we know this place is hell for those inmates. Why Obama still let the torture activities going? Like Top Gear Hosts like to say : "How hard can it be" to close the Guantanamo Bay. Just charge the inmates and bring them to justice if they did something wrong. What's the difference between USA and Myanmar when both countries lock and torture someone without bringing them to justice?
Second part of this article is economy. Obama did promise a lot last year and it was sweet. He said he will bring the US economy back to its feet. He also promised he will cut down the deficits. Unfortunately, everything goes wrong!
First he appointed Tim Geithner as US secretary of treasury. Then he expanded the Toxic Asset rescue plan (TARP) and add more fund to "borrow" to large corporations through "stimulus package". Then he reappointed Ben Bernanke as the chairman of Fed and lastly he introduced the health care plan which "force" every US citizen to buy insurance policy.
Now if you think any or all of these actions by President Obama is/are good, then you probably don't understand the truth behind it or you are a CEO or chairman of "wall street" large company.
Tim Geithner and Ben Bernanke are no doubt big spenders. Personally i think Geithner + Bernanke + Tarp + stimulus package + health care plan are absolutely good enough to bankrupt US. The scale of this collapse will be much bigger than 1970s, 1980s or dot-com. I even think it will be bigger than great depression.
So after all this, how Obama can reduce US deficits? by spending more money? does Obama understand what is deficit?
Decifit means spending / expenditure higher than income. So how can he generate enough income to cover the huge spending? Enough with reducing deficit, how can he generate income to maintain balance US budget. The only way is TAX. Yes you will see incredible rise of tax rate in US.
Even then I still don't think tax will be good enough to cover US debt. US dollar will crush and US economy will collapse. I can't think of anything that can save US economy except for a giant ball of money drop down from sky.
...... and Obama will stand tall in history as one of the worst US president ever.
Anyway my focus today is not about the market but about President Obama. I am sure he is one of the most influential US president ever domestically or outside the USA. The world loved him last year and congratulated him for winning the presidential election. He promise "Change" and "Change that we can believe in." However what has he done so far compare to what he promised to do last year?
His biggest promises are improve the economy and US foreign policy. From the first sight look like he is doing quite well but if you look carefully, he is climbing the ladder of the worst US president of all time.
First of all let's talk about US foreign policy. Obama promised us before the election that he will bring back US troops, close Guantanamo and give Iraq and Afghanistan freedom. The world loved the idea and praised Obama for these promise.
However what did Obama do since winning the election?
Afghanistan was having their election, but the election is rigged and corrupted. Hamid Karzai won simply because of graft and force and not support from Afghan.
Iraq is going nowhere near democracy. There are more suicide bombing in Iraq in the past 12 months than the history of Iraq history.
Furthermore instead of bringing back US troops, Obama is actually adding more troops in that 2 countries. The total troops in Iraq alone is rising to 130,000 from 115,000. FYI, all other nation have withdrawn their troops except for USA. That's not all, USA has spent more than 2 trillion US dollar since invading Iraq in 2003. How about the condition of US troops in Iraq? Here are the fact:
U.S. Troop Casualties - 4,340 US troops; 98% male. 91% non-officers; 82% active duty, 11% National Guard; 74% Caucasian, 9% African-American, 11% Latino. 19% killed by non-hostile causes. 54% of US casualties were under 25 years old. 72% were from the US Army
Non-U.S. Troop Casualties - Total 316, with 179 from the UK
US Troops Wounded - 31,483, 20% of which are serious brain or spinal injuries (total excludes psychological injuries)
US Troops with Serious Mental Health Problems - 30% of US troops develop serious mental health problems within 3 to 4 months of returning home
US Military Helicopters Downed in Iraq - 71 total, at least 36 by enemy fire
All these may not caused by Obama but he is certainly responsible for some of it as he still refuse to bring back the troops.
Now, Guantanamo Bay. Why is this torture chamber still standing on earth. I am sure all of us have information about this place and we know this place is hell for those inmates. Why Obama still let the torture activities going? Like Top Gear Hosts like to say : "How hard can it be" to close the Guantanamo Bay. Just charge the inmates and bring them to justice if they did something wrong. What's the difference between USA and Myanmar when both countries lock and torture someone without bringing them to justice?
Second part of this article is economy. Obama did promise a lot last year and it was sweet. He said he will bring the US economy back to its feet. He also promised he will cut down the deficits. Unfortunately, everything goes wrong!
First he appointed Tim Geithner as US secretary of treasury. Then he expanded the Toxic Asset rescue plan (TARP) and add more fund to "borrow" to large corporations through "stimulus package". Then he reappointed Ben Bernanke as the chairman of Fed and lastly he introduced the health care plan which "force" every US citizen to buy insurance policy.
Now if you think any or all of these actions by President Obama is/are good, then you probably don't understand the truth behind it or you are a CEO or chairman of "wall street" large company.
Tim Geithner and Ben Bernanke are no doubt big spenders. Personally i think Geithner + Bernanke + Tarp + stimulus package + health care plan are absolutely good enough to bankrupt US. The scale of this collapse will be much bigger than 1970s, 1980s or dot-com. I even think it will be bigger than great depression.
So after all this, how Obama can reduce US deficits? by spending more money? does Obama understand what is deficit?
Decifit means spending / expenditure higher than income. So how can he generate enough income to cover the huge spending? Enough with reducing deficit, how can he generate income to maintain balance US budget. The only way is TAX. Yes you will see incredible rise of tax rate in US.
Even then I still don't think tax will be good enough to cover US debt. US dollar will crush and US economy will collapse. I can't think of anything that can save US economy except for a giant ball of money drop down from sky.
...... and Obama will stand tall in history as one of the worst US president ever.
19.9.09
Can We Really Eliminate Racism?
Precious Metal start reversing. Gold was traded below the support level of 1008. However Silver still hanging above its support level of 16.70-16.80. I think you should take 80% of the profit and let the rest on the table. It doesn't mean precious metal can't go higher but the risk is just getting bigger.
Stock Market is look more and more like it gonna crash. CNBC team said it's bullish time again and this is the clear sell signal for stocks. However, again, it doesn't mean market can't go higher before the crash. I just can't see stock market all over the world rallied more than 60% from March low simply out of nothing. What's the most significant good economic news from March? Recession is over by Bernanke!
Here i wanna take a chance to talk about racism. I know this is a sensitive and serious topic. Everyone wants to eliminate racism but can we really go that.
To be honest, i don't think so.
Last month, a devastating typhoon hit Taiwan and killed more than 600 people and it was a disaster. People of Hong Kong and China donated huge amount of money, health care products and daily items.
However where are help from western countries?
Yes i know red cross association was there at Taiwan to help and i also know many people from western hemisphere did donate but where are help from other government?
Few weeks after that, Turkey was hit but the largest flood in decades. Thousand and thousand of people have no shelter to live. Many people from Western Hemisphere donated but where are those Hong Kong and China people that donated for Taiwan?
My point is that deep in our heart, racism is always there. China and Hong Kong people will car more of Taiwan people. Their action prove the point. I was in Hong Kong at during the disaster at Turkey and I never heard anybody saying anything about donate or offer help to the Turkish. I believe the same situation happen in Western countries when Taiwan was hit by disaster.
So, "eliminate racism" may only become a catch phrase to promote unity. Until we truly care of each other regardless of colour of their skins, religious and race, "eliminate racism" will never ever happen.
Stock Market is look more and more like it gonna crash. CNBC team said it's bullish time again and this is the clear sell signal for stocks. However, again, it doesn't mean market can't go higher before the crash. I just can't see stock market all over the world rallied more than 60% from March low simply out of nothing. What's the most significant good economic news from March? Recession is over by Bernanke!
Here i wanna take a chance to talk about racism. I know this is a sensitive and serious topic. Everyone wants to eliminate racism but can we really go that.
To be honest, i don't think so.
Last month, a devastating typhoon hit Taiwan and killed more than 600 people and it was a disaster. People of Hong Kong and China donated huge amount of money, health care products and daily items.
However where are help from western countries?
Yes i know red cross association was there at Taiwan to help and i also know many people from western hemisphere did donate but where are help from other government?
Few weeks after that, Turkey was hit but the largest flood in decades. Thousand and thousand of people have no shelter to live. Many people from Western Hemisphere donated but where are those Hong Kong and China people that donated for Taiwan?
My point is that deep in our heart, racism is always there. China and Hong Kong people will car more of Taiwan people. Their action prove the point. I was in Hong Kong at during the disaster at Turkey and I never heard anybody saying anything about donate or offer help to the Turkish. I believe the same situation happen in Western countries when Taiwan was hit by disaster.
So, "eliminate racism" may only become a catch phrase to promote unity. Until we truly care of each other regardless of colour of their skins, religious and race, "eliminate racism" will never ever happen.
17.9.09
Technically, Ben Bernanke is RIGHT!
2 Days ago, Ben Bernanke said recession is over. It's the greatest news especially to wall street and stock market all over the world response well.
To be honest, I think Ben Bernanke is technically right this time. According to Keynesian economics, recession mean 2 continuously negative economic growth. I am absolutely confirm that US will register positive economic growth for the third quarters of 2009 simply because of trillions of Dollar been pumped into the system.
So, Ben Bernanke is right. Nowadays we use Keynesian theory to run our economics and he is following the rule.
However, is US economy back on the "right track" again? I don't think so. Is GDP the only indicator of economy?
NO. Until today we still don't know what is the figure of money supply in US (M1, M2 or M3) since it's controlled by a private agency called Federal Reserve. So, if rise in money supply is higher than rise in GDP growth, then we are looking bubble and inflation.
However, we are neither looking at Asset bubble of Japan in the late 80's nor Asset bubble of China in 2008. We are talking about a "poor" country that own 60% of world's total debt facing some giant bubble.
So, from what i can see, this bubble will kill US dollar and US economy. If you think the economic crashes of 80%, burst of dot-com bubble or recession of 2008 is terrible, wait until you see the next crashes. It will be so huge and will sent US back to square one. Dollar will fell through hell and precious metal price will skyrocket.
However, since now recession is over, enjoy!
To be honest, I think Ben Bernanke is technically right this time. According to Keynesian economics, recession mean 2 continuously negative economic growth. I am absolutely confirm that US will register positive economic growth for the third quarters of 2009 simply because of trillions of Dollar been pumped into the system.
So, Ben Bernanke is right. Nowadays we use Keynesian theory to run our economics and he is following the rule.
However, is US economy back on the "right track" again? I don't think so. Is GDP the only indicator of economy?
NO. Until today we still don't know what is the figure of money supply in US (M1, M2 or M3) since it's controlled by a private agency called Federal Reserve. So, if rise in money supply is higher than rise in GDP growth, then we are looking bubble and inflation.
However, we are neither looking at Asset bubble of Japan in the late 80's nor Asset bubble of China in 2008. We are talking about a "poor" country that own 60% of world's total debt facing some giant bubble.
So, from what i can see, this bubble will kill US dollar and US economy. If you think the economic crashes of 80%, burst of dot-com bubble or recession of 2008 is terrible, wait until you see the next crashes. It will be so huge and will sent US back to square one. Dollar will fell through hell and precious metal price will skyrocket.
However, since now recession is over, enjoy!
15.9.09
Easy Way To Get Rich
Stock market around the world stand still for few weeks and nothing big happen except for precious metal. So you should hold on to the precious metal that you've bought and aim higher.
Since we have no real surprise in stock market, I will talk something about a theory. This theory use sophisticated analysis tools to teach us how to get rich.
Although this is a theory, it's actually applicable in real world as i believe most of the "rich man" in the world now are using this theory.
The philosophy behind this theory is simple. Assume we only have 2 people and 1 product in this world. To get rich, first person A will buy the product from person B. After that, person B buy the product from person A again with a higher price and person B finance it using money borrow from bank. After that Person A will again buy the product from person B with even higher price and the process continues.
At the end of the day, person A and person B are two rich man.
Wait, this story sound ridiculous right?
Yes. However the world is using this theory to manage our money and economy. It's Keynesian circular flow of income.
And yes, what i mean is the world today is using some useless and hopeless theory to evaluate wealth and money. However somehow we still use the theory and think it's suitable for us simply because many "expert" always tell us this is the right way to live. What we actually create using this method is none other than inflation and bubble
So you may ask what if the circular flow of income stop and 1 person refuse to buy from other person with a higher price?
Yes, this will create a crisis which technically called Asset bubble burst. Ever wonder why we have more economic crisis in the last 80 years than 500 years before in human history from 1500s to 1900s?
Keynesian theory of economics.
It's the perfect formula to get rich. All you need to do is spend money on an asset and sell it higher no matter how you finance the transaction. Ever wonder how some people can become so rich that we can buy the world? ever wonder how Rockefeller, Chase, bilderburg group and others can become so rich?
Yes, they all create situations where they can buy something and sell it higher. So they create ways to force you physically and mentally. They control your money and wealth. To do that, they must control government around the world and they did actually, believe or not.
Did anybody realize for the past 10 years, our life change dramatically? Our life is no longer belong to us but belong to the government. There are more legal acts that control our life in the past 10 years than 6000 years of civilized mankind history. Latest act is health care plan and it is created basically to control your way of managing your own health. You are forced to do something you don't want with hard earn money so that those rich people can become richer.
At the end, the goal is always the same, world government where the rich people and control everything including our life and soul and from their past and present performance, I guest they will be success for them.
So how they did it again? Yes, Money that created and controlled by them we become the slave for them. We work 8-10 hours a day for maybe 40 years for money and wealth and in the end, we get nothing. No life, no family time, no fun with friend......
You may say this is impossible and this can't be happening and it's just a conspiracy theory.......
To counter your argument, remember: We are using money created by rich people (federal reserve is privately owned organization!) on rich people. In other word, they are buying something from us (eg. time of our life as labor) and force us to spend our money buying something from them with much higher price and when we can't afford to buy it, we will borrow money from them with high interest and have to sell more of our time working as a labor. The cycle continues.
So you know how easy to get rich using this theory right?!
Since we have no real surprise in stock market, I will talk something about a theory. This theory use sophisticated analysis tools to teach us how to get rich.
Although this is a theory, it's actually applicable in real world as i believe most of the "rich man" in the world now are using this theory.
The philosophy behind this theory is simple. Assume we only have 2 people and 1 product in this world. To get rich, first person A will buy the product from person B. After that, person B buy the product from person A again with a higher price and person B finance it using money borrow from bank. After that Person A will again buy the product from person B with even higher price and the process continues.
At the end of the day, person A and person B are two rich man.
Wait, this story sound ridiculous right?
Yes. However the world is using this theory to manage our money and economy. It's Keynesian circular flow of income.
And yes, what i mean is the world today is using some useless and hopeless theory to evaluate wealth and money. However somehow we still use the theory and think it's suitable for us simply because many "expert" always tell us this is the right way to live. What we actually create using this method is none other than inflation and bubble
So you may ask what if the circular flow of income stop and 1 person refuse to buy from other person with a higher price?
Yes, this will create a crisis which technically called Asset bubble burst. Ever wonder why we have more economic crisis in the last 80 years than 500 years before in human history from 1500s to 1900s?
Keynesian theory of economics.
It's the perfect formula to get rich. All you need to do is spend money on an asset and sell it higher no matter how you finance the transaction. Ever wonder how some people can become so rich that we can buy the world? ever wonder how Rockefeller, Chase, bilderburg group and others can become so rich?
Yes, they all create situations where they can buy something and sell it higher. So they create ways to force you physically and mentally. They control your money and wealth. To do that, they must control government around the world and they did actually, believe or not.
Did anybody realize for the past 10 years, our life change dramatically? Our life is no longer belong to us but belong to the government. There are more legal acts that control our life in the past 10 years than 6000 years of civilized mankind history. Latest act is health care plan and it is created basically to control your way of managing your own health. You are forced to do something you don't want with hard earn money so that those rich people can become richer.
At the end, the goal is always the same, world government where the rich people and control everything including our life and soul and from their past and present performance, I guest they will be success for them.
So how they did it again? Yes, Money that created and controlled by them we become the slave for them. We work 8-10 hours a day for maybe 40 years for money and wealth and in the end, we get nothing. No life, no family time, no fun with friend......
You may say this is impossible and this can't be happening and it's just a conspiracy theory.......
To counter your argument, remember: We are using money created by rich people (federal reserve is privately owned organization!) on rich people. In other word, they are buying something from us (eg. time of our life as labor) and force us to spend our money buying something from them with much higher price and when we can't afford to buy it, we will borrow money from them with high interest and have to sell more of our time working as a labor. The cycle continues.
So you know how easy to get rich using this theory right?!
2.9.09
Look Out For Precious Metal!
Look out for the precious metal. They are rising and rising fast.
Precious metal have been underperformed compare to stocks and other commodities for the past few months. However in my opinion, you should at least allocate 25% of your capital into precious metal. They are going to explode just like 1980!
Why?
1. Billions of Dollar injected into the economics from central banks all over the world. Sudden increase in Money Supply = inflation. Many of you influenced by Keynes theory and think Inflation is calculated using consumer price index (CPI). Actually inflation should be calculated using increase in money supply.
2. Ben Bernanke. Last week Ben Bernanke remain as the chairman of federal reserve. He is throwing money from helicopter and everyone knows it. He will print infinity amount of money into the economics.
3. Interest rate. Even though everybody is talking about the recovery and end of recession, interest rate is kept low. Fed funds rate kept at 0-0.25%, Boj rate kept at 0.1%, Boe rate kept at 0.5% and ECB rate kept at 1%. Easy money is still here or should i say free money is at US which banks can borrow money for no interest!
So the best way to invest in precious metal is buying actual gold/silver/platinum/palladium bar or buying their future. However if you do not have the access to that, get yourself in precious metal etf such as gld or slv.
Try not to invest in stocks related to precious metal as most of the stocks are very expensive and overrated. Furthermore stocks tends to follow the stock market index and not their respective sector index. Example Barrick gold (ABX) has higher correlation with s/p index than gold future index. So this make the process of evaluate precious metal related stocks even harder.
Personally I got some of Zhaojin mining (1818.HK) and SLV.
P/S: to Tan, this is my recommendation. Try get some of these!
Precious metal have been underperformed compare to stocks and other commodities for the past few months. However in my opinion, you should at least allocate 25% of your capital into precious metal. They are going to explode just like 1980!
Why?
1. Billions of Dollar injected into the economics from central banks all over the world. Sudden increase in Money Supply = inflation. Many of you influenced by Keynes theory and think Inflation is calculated using consumer price index (CPI). Actually inflation should be calculated using increase in money supply.
2. Ben Bernanke. Last week Ben Bernanke remain as the chairman of federal reserve. He is throwing money from helicopter and everyone knows it. He will print infinity amount of money into the economics.
3. Interest rate. Even though everybody is talking about the recovery and end of recession, interest rate is kept low. Fed funds rate kept at 0-0.25%, Boj rate kept at 0.1%, Boe rate kept at 0.5% and ECB rate kept at 1%. Easy money is still here or should i say free money is at US which banks can borrow money for no interest!
So the best way to invest in precious metal is buying actual gold/silver/platinum/palladium bar or buying their future. However if you do not have the access to that, get yourself in precious metal etf such as gld or slv.
Try not to invest in stocks related to precious metal as most of the stocks are very expensive and overrated. Furthermore stocks tends to follow the stock market index and not their respective sector index. Example Barrick gold (ABX) has higher correlation with s/p index than gold future index. So this make the process of evaluate precious metal related stocks even harder.
Personally I got some of Zhaojin mining (1818.HK) and SLV.
P/S: to Tan, this is my recommendation. Try get some of these!
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