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In Articles on September 8, 2011 at 3:21 pm

Dear valued subscribers. Please note that our website has moved to http://www.hedgecapital.blogspot.com/

Appreciate your continuous support. Any queries and comments, please feel free to contact me. Thanks!

Quick and dirty: Which financial assets to buy during inflationary/deflationary periods? Part 2

In Articles on September 6, 2011 at 12:13 pm

Continued from Part 1:
Read more here Quick and dirty: Which financial assets to buy at each juncture of the business cycle? Part 1

Without further ado, here are the financial assets to own during inflationary periods.

Long gold and precious metals: Gold mining shares are closely linked to the price of gold (but not always the case). But gold, palladium, silver etc may provide a hedge against inflation as the debasement of fiat money continues.

Read more here Quick and dirty: Which financial assets to buy during inflationary/deflationary periods? Part 2

Quick and dirty: Which financial assets to buy at each juncture of the business cycle? Part 1

In Articles on September 6, 2011 at 12:10 pm

Perplexed over various business cycle diagrams and how/which financial assets to trade in at each critical juncture? Here’s a quick and dirty guide. I have tried to find the perfect business cycle diagram to better delineate the explanation below but no such luck. So please just make do with the above picture.

Read more here Quick and dirty: Which financial assets to buy at each juncture of the business cycle? Part 1

Charlie Munger’s Wisdom, Poker and Votes

In Articles on September 6, 2011 at 12:08 pm

Charlie Munger is arguably one of the finest investors, with his famous quote found in “Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger”:

“In my whole life, I have known no wise people who didn’t read all the time-none, zero. You’d be amazed at how much Warren reads-and at how much I read. My children laugh at me, they think I’m a book with a couple of legs sticking out” from Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger

Read more here Charlie Munger

Investment Ideas on China Plays

In Articles on September 6, 2011 at 12:07 pm

Yan Ji, investment director at HSBC Jintrust Fund Management Co., which manages $1.6 billion, forecast that earnings growth in China may taper off to 10% for fiscal year 2012. He favors two sectors, namely technology, particularly in the cloud computing space, and consumer staples producers, as domestic consumption spending is encouraged to fend off the dip in exports.

“Miao Wei, minister of industry and information technology, said Aug. 23 China will push forward development of the Internet to make breakthroughs in cloud computing and the Internet of Things” a global market which is expected to increase by six fold to $241 billion market in 2020.

Read more here Investment Ideas on China Plays

Espousing Undervalued Predictable Companies with Momentum Element for the Week of Aug 31

In Articles on September 6, 2011 at 12:05 pm

In this volatile market, it pays to combine technical analysis with strong fundamentals before one plunge into a stock. One must also plan his exit strategy by monitoring the next price resistance. For those who scorn espousing value and momentum trading in investing, I urge you to read this article: Momentum element in value investing

But the researchers found that a strategy that simultaneously pursued value and momentum performed better over the long term than value or momentum alone.

Read more here Espousing Undervalued Predictable Companies with Momentum Element for the Week of Aug 31

Wisdom Gleaned from Consuelo Mack’s Interview with Steven Romick of FPA Crescent Fund

In Articles on September 6, 2011 at 12:03 pm

Readers need to go to the site to view the 26 minute interview
Great investor traits

1) Intensity about work

2) Attention to detail

3) Disciplined investment process

4) Independence of thought and deed

Read more here Wisdom Gleaned from Consuelo Mack’s Interview with Steven Romick of FPA Crescent Fund

Hedge Funds Going into Unchartered Territory to Seek Alpha Drivers

In Articles on August 26, 2011 at 11:23 pm

A study of traditional large cap equity manager has shown that the manager’s returns practically replicate the S&P 500, with beta of 1 and correlation coefficient of 0.99. This means that the fund is a beta driver, not an alpha driver.

Read more here Hedge Funds Going into Unchartered Territory to Seek Alpha Drivers

How the Recent Volatility Has Affected Market Participants

In Articles on August 26, 2011 at 11:21 pm

Thanks to all who took the time to vote

The poll is still ongoing and it is surprising that most readers are still long and strong amidst this volatile market (71% as at August 28). Kudos for not being afflicted by doom and gloom from the media.

There’s an interesting article on how the madness of Wall Street had affected the market participants.

Read more here How the Recent Volatility Has Affected Market Participants

The case for investing in commodities

In Articles on August 26, 2011 at 11:18 pm

Characteristics of commodities are:

1) Interest rates have minor impact on value of commodities.

2) They do not represent a claim on ongoing cash flow stream thus NPV valuation is not applicable.

3) Commodities trade in global markets, thus their value is depended on the dynamics of supply and demand of global markets.

Read more here The case for investing in commodities