Investment Feeling on 25-Feb-11

After storm, there always will be a sunshine day came through. Today is a sign of relief & fruitful day as STI index showing strong rebound from the previous day dipping, and finally close at 3025 pts which stayed above psychological level (refer to the chart as below):

But next week will be a crucial week for STI index to show the stability for it to stay strong above the level if the situation at Libya or other North Africa or Middle East countries can not be resolved. But in the view of next few months, the possibility of last bull run is likely to be occured, and subsequently lead to another round of finanical crisis. Current oil price has been staying at US$98 with a possibility to hike above US$100 level, this may give a hurdle for some countries to counter the inflation rate, the possible policies to counter the inflation rate may lead to higher interest rate, increase bank reserves and even affect the countries GDP to defer the growth of economy.

The recent correction has been giving a hit to overall equity markets, but at the same time, it also shaken the weaken holders for retail investors in order to reform the foundation before rising to the next level. Fortunately, precious metals, e.g. Silver or Gold, have shown outperforming than stock markets with thanks to high inflation & countries unrest. As s result, it shows the importance to diversify your investment portfolio into different aspects instead of putting all your eggs into a same basket. Currently, I've only putting 8% into the Silver investment, and majority portion into stock markets, which may not be healthy for long term investment. I've planned to reorganise my investment portfolio after this last round of bull run into moderate risk of financial tools, e.g. UK Endowment Plan (return yield - 4% to 8%), Land Banking, French Wine Investment or Property Investment.