Wednesday, December 20, 2006
Thai reversed the policy ...
Tuesday, December 19, 2006
Leave the market
Thai government have done something unusual ... and this may trigger another Asian currencies crisis. Remember that the currencies crisis was best modelled with the heat diffusion equation ... that's a problem that can never be confined locally. The market liquidity would suddenly disappear. To play safe, I would cash out half of my emerging markets position.
Internet regulation from the view of investment
When the government is thinking about regulating the Internet and make BT of movies criminal act, I have some alternative thoughts.
In my view, global financial markets work like a organic system, capital suck up to the financial institutions and markets, then pumping it out, in the form of credits and investments. Markets are less than perfect. But, when individual industry is asking for allocation of resources and government regulation to protect their profit, that's a sign that they are loser under competition. Investment simply don't go there. The France film industry got government support earlier in the centry, and this accelerated it's dead. As we all know, the winner, Hollewood movies, now dominate the World.
The regulation would increase costs to the service providers and the users, but it won't benifit the industry.
In my view, global financial markets work like a organic system, capital suck up to the financial institutions and markets, then pumping it out, in the form of credits and investments. Markets are less than perfect. But, when individual industry is asking for allocation of resources and government regulation to protect their profit, that's a sign that they are loser under competition. Investment simply don't go there. The France film industry got government support earlier in the centry, and this accelerated it's dead. As we all know, the winner, Hollewood movies, now dominate the World.
The regulation would increase costs to the service providers and the users, but it won't benifit the industry.
Monday, December 11, 2006
Some thought
Korea Fund is under-performing this year. Although the fund had 160% gain since I bought it, I don't like it. Korea industries used to run under a protected environment, they will have difficult time when the rules allow full competition. If, in the comming 6 months, there is still no sign of improvement, I'll liquidate it.
China funds are doing well this year. I am not holding any now. I just indirectly holding via Emerging market and BIRC fund. For China only fund, I found that Hang Seng H-index 150 leveraged fund is the most efficient one. Yet, I have no interest to buy China fund at this level.
For emerging markets, I think ASEAN and emerging europe are more attractive than India and China as the systematic risk is lower there. I have enough for ASEAN, but under-weighted in Latin and Eastern Europe after I closed my investment account in Credit Sussie.
Japan fund is the only loser in my portfolio. I should switch elsewhere.
China funds are doing well this year. I am not holding any now. I just indirectly holding via Emerging market and BIRC fund. For China only fund, I found that Hang Seng H-index 150 leveraged fund is the most efficient one. Yet, I have no interest to buy China fund at this level.
For emerging markets, I think ASEAN and emerging europe are more attractive than India and China as the systematic risk is lower there. I have enough for ASEAN, but under-weighted in Latin and Eastern Europe after I closed my investment account in Credit Sussie.
Japan fund is the only loser in my portfolio. I should switch elsewhere.
