Category: Money Tips Date: 2006-09-28
By David Cao Fei, Taiwanese, and Fidelity fund management company director, Prudential fund business in Greater China CEO.
Investment capacity are long-term culture, simply put, investment and many other similar knowledge, first of all have a correct theoretical framework as a foundation by which to judge a number of market phenomena and prediction, and then contrasted with the actual results. But otherwise, I think investors have to do with the "real confrontation" in order to achieve better results.
The courage to overcome fear --- buy low, but actual combat is not easy. For example, a month ago, emerging markets (such as the Golden Brick home) for fear of U.S. dollar interest rates sharply since the beginning of high-grade down, of course, also fell in other mature markets, only the strongest Chinese stock market (because there is no rose before). I saw quite a number of South Korean stock market correction that could undertake. Also, because prior to think these stocks are too high, most equity funds have been redeemed, resulting in more cash on hand, but can be bought on dips.
However, in actual operation, as purchase funds (especially foreign funds) is not aware of the net down, so I have followed the theory, "a block buy", but the results are not satisfactory. Gein Indian stock market has slumped, so we bought in India Sensex30 index near 9300 (I think that this point has been low enough, because last year in June 7000 points, this wave of high 12600 points), but only the amount purchased is expected to purchase the non - to three as a result, two or three months, the index test a low at 9000 points, below (the lowest point lower than my cost of 4%), two days later they immediately returned to nearly ten thousand points, over the past two weeks, no further Back to the 10000 points below. South Korean stock market on top of what I am depressed, when the KOSPI index down to 1200 points, near the bottom is the same on the rebound, so I did not buy anything, watched index back to 1300 points.
What is learned? Why is obviously looking for the actual operation, but also hard to satisfied with that? I think both can give your reference. First of all, a variety of investment tools, each market has its own characteristics, but to buy funds or stocks, you want to buy a minimum or sufficient quantity, their chance in the lottery, and quite probably. Believe me, this is absolutely lucky. But bargain-hunting as long as the courage to return will be very good. For example, I bought low-end India Fund had unrealized returns 10%. On the other hand, buy less volume there is nothing wrong, as desperate like gambling, so it should not be too upset.
A sharp correction last week, shares of the stock market the same period, the U.S. S & P and the Nasdaq composite index both hit lows for the year, coupled with the Middle East is very tense, I would like to exact their original estimates, global stock markets have a need for adjustment. Domestic issuance of new shares IPO, raising interest rates gradually increase the pressure on the tight regulation of real estate (restrictions on foreign purchase of housing), A further pullback in shares of the stock market is still possible. Perhaps today's example mentioned in the near future I would have been, I hope you learn from my mistakes in a real skill, and investment success.
