First Day of My Investment Blog

I started this blog to record what I learn and what I think about the market in general. Writing a diary on paper is one way, but it lacks the flexibility of internet.

I will try to make it more organize as time goes by, so it may be quite "chaotic" in the beginning.

1. Japan Insurance sector go up more than 7%! Just last week I heards rumours/news that they may have much larger than expected Sub-prime losses, and I thought it will not rebound anytime soon. however, today they were up after the news on US bond insurer rescue. My boss also indicate that some of the bigger Jap insurers announced decent earnings. Hmm... may be a bit of both, and because of the low P/B (lower than 1). Still not convinced as a long term holding, as there is not much growth in Japan and interest rate hike seems remote.

2. The recent trend in Japan market shows a clear outperformance of the favourites of foreign investors, like trading houses, capital goods and autos. They are low in P/E and exposed to emerging markets. Japan also outperform the region YTD, I "think" more funds will be forced to add back weight to Japan from zero/underweight. So this relative outperformance may continue for a while. However, this contradicts with what I heard from brokers, as they indicate decreasing trading volume from long funds. Outflow was also obvious in the indiscriminate sell off earlier in the year.

3. Pioneer and Sanyon Electric are leading the 1m return table with returns of 47% and 62% respectively. The crap are outperforming! Who can tell me what to do?

4. HK keep getting pressure from A-share market, lagging the whole region and the world. This may persist for another month. However I am positive on dry bulk on short term and baltic dry index should get support from the earlier than expected signing of iron ore contracts.

5. Chinese Internet sector seems holding up quite well( earnings), but their P/E are still very demanding. Better focus on stock picks.

6. Value is winning back as market stables, rationality returns. High dividend yield and low P/B are two things to keep in mind.