Master Rider Blog

Flying High

October 1st, 2007 NW Teong

As mentioned in my blogs last week, regional stock markets are expected to fly in view of renew confidence in the stock markets as well as a surge of liquidity. Please see the charts for STI and HSI as follows:

The official formation of a giant fund by the China government, the China Investment Corporation with deep pocket to the tune of US$200b which is slated to invest in regional markets has further spurred this optimism in the markets. This coupled with the gradual (but surely) opening of the door for local Chinese to invest in overseas markets has provided the icing of the cake for investors to rush in to ride on this huge liquidity surge (a tsunami in different sense). If you recall my Master Rider Investment Philosophy, “Stock investing is just like surfing. You need to choose the right location (i.e. the right stock) and the right time to go in. More importantly, you need to be disciplined and skillful in wielding your knowledge and experience to ride the waves in order to have maximum fun (i.e. profits)!” This is precisely what investors think they are doing, positioned themselves well for a big splash throughout this final quarter of year 2007.

While enjoying the fun, we have to be mindful of event risk. October would still be a volatile month as far as equity is concerned. However, other than October, final quarter has historically produced the best returns as compared to other quarters of a year.  Wishing all of you a bumper crops in this final quarter of 2007! Cheers!

Master “The Essence of Stock Investment” and ride towards the journey of your financial freedom to be the “Master of Your Own Destiny”!

Disclaimer: Investors are investing at your own risk. Please read full disclaimer at the end of the blog or from the main page of the website.

Entry Filed under: Macro, Stocks, Singapore