Thursday, January 15, 2015

Monday, January 12, 2015

China Is Slowing Down But There Are Interesting Sectors To Invest

They have been trying to slow things down, they had inflation, they had a property bubble and the government is rightly trying to slow things down.Sme of their customers are slowing down, Europe, etcetera. So, yes, things are changing in China, they have been slowing down.

I have been buying Chinese shares for the past year. I did not buy Chinese stocks between 2008 and 2013. But the government came down with a list of the parts of the Chinese economy they are going to emphasize, where they are going to billions of dollars emphasizing these parts of the economy. So I have been buying shares in those sectors of the Chinese economy.

Sunday, January 11, 2015

U.S Stocks Vs. Japanese Stocks

The Japanese stock market is down 60 percent from its all time highs. The U.S. stock market is making all time highs. The Japanese stock market is certainly cheaper on an historical basis, on an absolute basis, on a relative basis. You have to be worried about the currency. You have to understand the currency because it is being destroyed. But if you hedge your positions, you might make some money.

Related trading instruments: Nikkei 225 Index, USDJPY forex cross;

Friday, January 9, 2015

Bullish on Japanese Stocks

I own Japanese shares at the moment. I will probably buy more. But long term, Japan is a disaster. I mean, they have a declining population, skyrocketing internal debt, they are debasing their currency...

Debasing your currency has never been a viable way to revive a country, even in the medium term. It helps in the short term but its a disaster in the long term. So, Mr.Abe, the prime minister will go down in history as the person who ruined Japan. No question about that. In the meantime, I own Japanese shares, I will probably buy more. He is putting through things that have helped and will help the stock market. Giving incentives to the Japanese to buy shares, he is persuading the pension funds to stop buying government bonds and to buy shares. He is doing a lot to help the stock market.

But I want to emphasize, in the end it is going to be a nightmare for Japan but in the mean time its good for stock brokers.

Related trading instruments: Nikkei 225 Index Futures

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