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I am an avid fan of Asian Investment Guru Mr. Hu Li Yang's book on investing in stock markets, therefore would like to share one of his analysis below which is very well written.
Our global funds will be toward the "four high and one low."
Investors ask - I 2008 until the second half of the market,wanted to have a low price, you can pick up a cheap , but the impact of the global stock market crash, the stock is still in the hands stuck state. One day, Hu met the teacher talked about in an interview, the global stock market is entering hibernation, but the A shares of the early hours, immediately relieved of some, Hu also stressed that as a high-low has four advantages, the next 10 years, the focus of the global economy will be in China! This has strengthened my confidence in long-term investment, thank you very much!
Recently, many TV shows, I most frequently asked - the future of the world's best investment opportunities in where? Is still well-loved BRIC BRIC? Or alternative choice recently come to the fore -VISTA five countries (Vietnam Vietnam, INDONESIA Indonesia, SOUTH AFRICA South Africa, TURKEY Turkey, ARGENTINA Argentina ) ?
My answer is: trying to make money, you have to go along with money! So long as the mastery of the global investment-type funds in the future, will be able to instantly get the correct answer. After the financial crisis, in order to spread the risk, originally stationed in Europe, investment-oriented funds from around the world have plans to find another way out.
Personally visited at least 5 after heavyweight asset management company and understand, I think the world will actively seek funds have four high and one low to another investment environment.
I called four high means:
1) high economic growth of Gross Domestic Product GDP
2) high-growth domestic market
3) a high return on investment securities
4) high potential currency appreciation
As it is a low
1) low inflation Consumer Price Index CPI
Four high and one low easy to understand but it must be explained. In my research: as long as the CPI consumer price index can be controlled in GDP half of GDP or below, in line with the conditions of low inflation.
For example, if China 2009 year GDP was 8% less CPI as long as at 4% within, is in the range of low inflation, which I would call moderate inflation inflation.
Generally moderate inflation on the housing market and the stock market is not only no injuries, but there will be a positive benefit. Okay, Looking at the world economic situation today and compare them, China is indeed the most in line with four high and one low conditions. That's why I always think the future of China will serve the long-term causes of the protagonist on the world economic stage.
In terms of the stock market do? Shanghai and Shenzhen stock markets have a future super advantage, that is to invest the majority of the population still increased space, the current account population is still only a total population of 10% , the next 3 years increased to 15% of potential great.
In my estimation, in a bull market, each additional 1% of the population accounts can push up the Shanghai Composite Index at least 500 Dao 700 points, just from this point, other global stock markets may have only envy copies.
Mandarin Original Version extract from Asian Investment Guru Mr Hu Li Yang, Leon https://tradingeconomics.com/ https://baike.baidu.com/item/%E8%83%A1%E7%AB%8B%E9%98%B3
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.