‘No chances of making money’: Chinese retail investors have lost more than 100,000 yuan each this year

Dear friends,

We recently saw panic and fear as the tension and price action of markets went down for past weeks,

The title of the news article seem to imply that the China market could continue to spiral down. Is this really so?

Click here for details.

In my personal view, the market will move up and down because being a risk asset it is not supposed to stay fixed in price as demand and supply will cause the price to fluctuate.

Most short term investors who hold such a short term view cannot possibly generate returns as they run for the exits when volatility increased. When they return, they will have to pay a higher price because the "market" has calmed down according to their analysis.

Usually, its the long term investors who benefit from such market move as they buy more to average.

Anyway,  when the going gets rough, the tough gets going.

Cheers and have a great day.
Eric Oh

A mixed bag of returns

Dear friends,

On 31 Aug 2018, there was an article that downplay Einhorn's fund vs Ackman funds.

Einhorn's Greenlight off 25% for year; Ackman up double-digits

Activist investors: David Einhorn (left) and Bill Ackman

Source: https://www.cnbc.com/2018/09/01/einhorns-greenlight-off-25percent-for-year-ackman-up-double-digits.html

For details,please click here.

In this article, I like to share with you that such comparison may not be helpful to the investors who are investing in the hedge fund because both funds could be pursuing different strategies to produce their returns.

Another point to note is that most investors who chase performance over the short term may be shooting themselves in the foot. The reason is just when the fund is doing poorly for some time, the investors pull out of the fund. Then almost immediately, the fund start to recover the losses and make back the return.

So the market is punishing those who wish to invest but have very little patience. I remember a wise saying :" Your investment result in the market is a reflection of your own mental state. If you have the right perspective and attitude, it will repay you with what you deserve." Similarly, that is the reason why I stated how well you treat others will be repay by how others treat you in the past article.Click Here

To change or improve, start by appreciating what you have and those around you. Learn to let go and move on if someone has wrong you else you will always be stuck in a negative vicious cycle filled with negative energies and thoughts.

Sometimes, there will be people who want to get something for nothing. This show a lack of maturity because it defies the basic law of compensation.

With that in mind, I encourage those who interested investing to consult me or a professional before they start chasing after the mirage. 

Cheers and have a great day.