Tuesday, July 14, 2009

Why I need (PEF) Private Equity Funds support?

In equity market, if you have some funds. You can easily step in as a normal investor. But its do not apply and not suitable for me. Because I use to be trade fast and cut fast. If the up trend is there, I will continue buying in. Maybe this theory suitable for PEF because they are looking the yearly yield about 12.5% per annum. Furthermore they can absorbed such lose if trading wrong on short term basic.
Today, world market surge due to US DJ shut up. But investors forgor one important factor. The main factor of shut up because of strength on USD. They transfer back all their fund back to US and use hedgeing theory to reduce the risk of adjustment on others countries' currency. So, I am still negative view on the rebound of today.
World Fund Manager buying USD and throw the funds into US shares market for short term. Later on they will start buying the bond of US to enjoy the surplus of USD. Hence, recently Japan Yen strong due to demand of loan.
Base on the above analysis, equity market soon have a big adjustment on it. The panic will kill all holders and day trade players. If this round happen such heavy adjustment, maybe is good for next rally. After this heavy adjustment, the bullish will long and strong. So that why we want to jump in at this time to waste you funds in hand. Just wait and patient a bit!!!!!!

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