Where to invest in Asia ...

In 2001, we heard about the term 'BRIC', when it was first introduced by Jim O’Neill, an economist at Goldman Sachs. About last year, I am sure most of you must have read or heard, the other term, the Fragile Five. Someone from Morgan Stanley decided that due to the various economic changes(negatively), the economics of BRIC is going to be going downhill. So what does this mean to investors?

Let's first look at some of the data from the wordbank, in terms of the current account balance for these countries, in particular, Brazil, Indonesia and India. Why these 3 countries, well, because they are having election this year, and historically has shown that most stock market react positively during the election year.

worldbank data

Above is the chart from the wordbank, Indonesia has the least current deficit follow by Brazil and then India. In another graph below, it shows the comparison of the current account for Brazil and Indonesia. At least from the graph, it shows that Indonesia is trending up strongly.

tradingeconomics

Now, let's look at how the Indonesia stock market has performed, we used the Market Vectors Indonesia Index ETF (IDX). In the chart below, it has managed to close above the weekly 20MA and weekly 10MA is trending up which is a positive sign.

At the current PE ratio, is it still cheap?

Gold correction over ...

After a major correction, gold has lost it's shine and people have not been talking much about them recently. Most of the people were worried about the tapering, stocks and interest rates, this might be a good opportunity to relook at gold again.

In the recent Barron's Roundtable, gold and gold mining stocks were highlighted by few gurus, and in particular George Soros had added gold mining stock into his portfolio. One of which is Gold Miners ETF (GDX).

Let's take a look at the daily chart then follow by the weekly chart.

In the daily chart above, the last closing price is above the 200d MA, this is quite positive, and the 10d and 20d MA has also trended up. When will the 50d MA cross 200d MA, which is the technical divider between the Bull and Bear.

In the weekly chart above, the closing price is above the weekly 20 MA, and 10 MA has trend up as well.

So who's been buying for the past few weeks, when not many people are looking and can this upward trend continue?

Stock Watch: Suntec Reit

Yes, this post is about Suntec Reit again. The last 2 weeks we have seen how the Reits have corrected due to the start of the QE tapering and the possibilities of increase in interest rates(nobody knows when), although from one of the FOMC meeting it was understood that the low interest rate should last till 2015. Reits are not the only sector that is affected, across the market, all the counters have reacted negatively too.

As I was doing my lazy surfing, I came across a few interesting posts by fellow blogger about reits and suntec reits. One of the post is from mystocksinvesting.com; he has been tabulating the reits data for a while and it helps one to do analysis easily. In another post, he also included charts from most of the Reits, and if you looked at them, most of them are either in downward trend or in consolidation.

And you may ask, why Suntec Reit. Comparing to the other reits, it is one of the highest debt gearing, which is a concern. And apart from trading below it's NAV, yield about close to 5.8%, these are also not too compelling to be in one's shortlist.

However, looking at the daily and weekly chart below, do you noticed that it is different from the other reits counter. Would this trend continue ...

Daily Chart

Weekly Chart