Wondering how many readers will give supportive feedback to me after reading the title above. This is just another index as a world's economy growth indicator. Nonetheless the chart is heading to North with a sharp decline. I dare not to put the graph up over here to avoid any panic to my readers. This index is closely followed by all Wall Street Insiders because it is a good indicator of economic growth and production. In a nutshell, the BDI reflects how much it costs to ship raw materials (like coal, iron ore, cement and soft commodities like grains and sugar) by sea. The level of this index is also impacted by fuel costs, fleet numbers and seasonality but if the index rises, it means that demand is generally strong causing other ports to be congested. In short, BDI has a very strong correlation against oil price. Well until here I bet you will understanding why I insisted not to put the graph :p
P/S: Please google BDI yourself for more info. Thanks to the Internet ya~
Monday, October 27, 2008
Friday, October 24, 2008
Long or short?
This had been long time never login after the last entry. Here you go my sharing about the financial cirsis happening around us.
Financial advisors are like any other profession; some are very smart and talented, whereas others border on the edge of incompetency. In the middle is a mix of people who generally do a decent job managing their clients' money.The problem in bear markets is that many individuals let anger interfere with rationale decisions. Rather than stick with strategies that have worked in the past (and have been proven to work over the long-term), many investors look for alternatives. Often these changes do more harm than good.As an analogy, the same thing happens with dieting. Individuals who lose weight and then switch diet plans when the pounds start to come back are likely to gain even more weight than those who go back to the diet plan that originally worked for them. Investing is no different. If a diversified portfolio comprised of fundamentally-sound stocks with rising earnings estimate and attractive valuations has worked in the past, why change the strategy now?Bear markets are painful, but they are also temporary. Remember, investing is about the long-term. So stick to strategies that have proven to work over the long-term.
Financial advisors are like any other profession; some are very smart and talented, whereas others border on the edge of incompetency. In the middle is a mix of people who generally do a decent job managing their clients' money.The problem in bear markets is that many individuals let anger interfere with rationale decisions. Rather than stick with strategies that have worked in the past (and have been proven to work over the long-term), many investors look for alternatives. Often these changes do more harm than good.As an analogy, the same thing happens with dieting. Individuals who lose weight and then switch diet plans when the pounds start to come back are likely to gain even more weight than those who go back to the diet plan that originally worked for them. Investing is no different. If a diversified portfolio comprised of fundamentally-sound stocks with rising earnings estimate and attractive valuations has worked in the past, why change the strategy now?Bear markets are painful, but they are also temporary. Remember, investing is about the long-term. So stick to strategies that have proven to work over the long-term.
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