Let’s talk about investment activities or the lack of it.
Most hedge funds lost money in May’s volatile markets, with stock- and commodity-focused funds bearing some of the biggest losses. (Dow Jones Newswire, By Margot Patrick) These hedge funds invested in equities, commodities, currencies, interest rate instruments. This means that hedge funds bet wrongly on directions of these investments. One interesting bet was for silver to rise spectacularly just like gold. But instead silver slumped 21 per cent in May. There is no sure bet.
US, the world’s biggest economy, hit a road hump and slowed. Unemployment rate moved up to 9.1 per cent for May. Consumer spending slowed. China and India are facing inflationary pressures and are tightening their monetary policies. Japan slipped back into technical recession in the first quarter of this year. With the earthquake in March, economic slowdown is already seen. The European debt crisis is not going away. There are uncertainties in global economies.
Since end-February, I was not active in the Singapore stock market. The Straits Times Index (STI) was range-bound. There is no incentive to accumulate stocks or to sell off. Instead, I have been pulling back funds from currency trade and regional equity fund. The latter is the Middle East fund where the political turmoil has not abated.
Copyright © 2011, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.