I chatted with a friend a couple of weeks ago. He was asking whether did I buy the commodity fund? I said no. Nowadays, I try not to go into exotic products, which I can't really predict the cycle. Maybe if you went in 1 year back, you are laughing non stop now.
But for the new investor, refrain from going into commodity fund should be the strategy. "What goes up must come down", everyone should remember this. Maybe we are really in the commodity super bull cycle. However, buying at the current time, the risk out weight the potential gain.
The high inflation, high commodity price should led to reduce demand. The growth is also slowing. There isn't a favourable factor to consider going into commodity now.
Sunday, 13 July 2008
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2 comments:
Yup, I also do not buy such funds as even if I bought at the right time, I have to sell it a the right time in order to profit. If not, I may end up in a case of paper gains, realised loss!
Problem with people is we tend to want to get involved in the IN thing now. More than often, people trapped at the top for many years. Take a contrarian view equity is really worth considering as compared to a year ago.
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