Dear Friends,
Attached is the annual investment report for year 2011. It will give you an idea of my thinking process and methods when dealing with last year volatile and uncertain market situation. I have cut the pages given that there are complaints that 2010 report was a tad too long. Hope you enjoy it!
Happy Chinese New Year!
Here is an excerpt from the report:
In the line of our work, we get to talk to many analysts and economists who have more degrees under their belt than I have. However, I find that they generally give inaccurate predictions. Let me give you an example by listing some of the investment ideas for 2011 by a major investment and research house, who are regularly being quoted in our mainstream media.
Recommend 1: North Asian markets are expected to do better than South East Asian markets
Results: SEA markets performed much better than North Asian Markets.
Recommend 2: Avoid gold funds.
Results: Gold future funds are some of the best performing in 2011. Gold shares however did badly. They are predicting a fall in the price of gold which is incorrect. If gold shares did not diverged from gold prices, they would have done well instead.
Recommend 3: Outperformance of the small caps.
Results: Small cap lost much more than that of large caps during the year.
Recommend 4: Favourite single-country equity market: Taiwan
Results: Taiwan stock market lost -21.18% in 2011.
Recommend 5: Least favourite single-country equity market: Indonesia.
Results: Indonesia is the best performing market in the world.
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